Earlier this week, Paramount acknowledged the sharply lower value of its cable businesses as part of its quarterly earnings report. It registered a one-time loss of $6 billion from its cable division, together with layoffs of up to 2,000 employees, roughly 15% of its total worldwide staff.
A toxic combination of consumers continuing to cut the cord on cable subscriptions, declining ratings from those subscribers that remain, and a relatively weak advertising market has wreaked havoc across the industry. Layoffs will reduce costs by up to $500 million, a goal laid out by Paramount’s leadership earlier this summer.
The decision to write down the value of these assets may have been influenced in part by the upcoming merger with Skydance Media, and the priorities of its incoming CEO David Ellison. In interviews, since the upcoming acquisition was announced, Ellison has indicated that he plans to invest in Paramount’s movie studio and streaming business and reduce focus on its cable assets.