---
type: entity
entity_type: company
name: Paramount Skydance (PSKY)
domain: entertainment
status: active
founded: 2026
headquarters: United States
key_people:
  - David Ellison (CEO)
website: 
tags: [studio, ai-production, merger, streaming]
supports:
- The IP accumulation path achieved structural DTC profitability in 2026, demonstrating it is a viable long-term configuration not a declining model
reweave_edges:
- The IP accumulation path achieved structural DTC profitability in 2026, demonstrating it is a viable long-term configuration not a declining model|supports|2026-05-09
---

# Paramount Skydance (PSKY)

## Overview

Paramount Skydance (PSKY) is the merged entity formed from the combination of Paramount Studios and Skydance Media, with Warner Bros. Discovery (WBD) as part of a broader consolidation. Under CEO David Ellison (former tech entrepreneur turned entertainment executive), PSKY is positioning AI at the center of its content production strategy.

## Strategy

**Three Pillars:**
1. IP dominance — Star Trek, DC, Harry Potter, Mission: Impossible
2. Technological parity with Netflix — AI-driven production
3. Financial deleveraging

**AI Implementation:**
- Scaling Skydance's virtual production AI tools (previously used in Mission: Impossible, Transformers) across all Paramount Studios
- AI tools applied to script development, casting, and visual effects with "real-time rendering and data-driven creative decisions"
- David Ellison explicitly "aims to use AI to forecast what viewers want" (IMDb News)
- $2 billion in annual cost savings by 2026, with a portion reinvested in AI development
- $6B in cost synergies from WBD merger targeted at "non-labor and non-content areas: technology, cloud, procurement, and facilities"

**Production Scale:**
- 15 theatrical releases planned for 2026 (from 8 previously)
- Combined with WBD's 15 = 30 box office releases/year
- All franchise-concentrated

## Strategic Positioning

PSKY explicitly positions AI as enhancing, not replacing, owned IP value: "generative AI will enhance, rather than erode, the value of owned film and TV intellectual property by lowering production costs and enabling new interactive revenue streams."

This represents the progressive syntheticization path — using AI to reduce costs within existing production workflows rather than pursuing AI-native production from scratch.

## Timeline

- **2026-04-01** — MiDiA Research analysis reveals PSKY placing AI creation at core of production strategy, targeting $2B annual cost savings and technological parity with Netflix through AI-driven workflows