Paramount Global co-CEO Chris McCarthy said the company has invested in Taylor Sheridan producer 101 Studios but isn’t looking to acquire what he calls a preferred partner. Par has also started using models it developed around Sheridan with new creative talent.
“We absolutely value both of those parties. Let me first start by saying that they’re two separate entities,” McCarthy said on Paramount’s quarterly earnings call when asked why Paramount doesn’t buy 101 and vertically integrate with its hit machine Sheridan.
“Taylor is a very gifted and unique creative and Paramount has an exclusive with him through 2028 and we own all the IP that comes out of that. We have a great relationship with him, a deep partnership that we built over time, and it’s working. The results really speak for themselves. And we’re confident that that partnership and the hits will continue,” he said of the prolific creator of Yellowstone, 1883, 1923, Mayor of Kingstown, Tulsa King, Special Ops: Lioness and Landman, with more in the pipeline. Sheridan has also helped Paramount-Comcast JV SkyShowtime establish itself on the European streaming stage, as the shows travel well.
“As it relates to 101, you know, they’re absolutely a preferred partner. We love working with them, and David [Glasser, CEO] and what he and his team have built. So much so that we’ve invested in them. But we like the relationship we have. We think the incentives are based on where they should be. And we plan to keep the current process and the current relationship as it is now, related to Taylor.”
He didn’t elaborate on the investment.
Sheridan “really helped us to learn some new models,” McCarthy added, which Paramount is now using to work with some of its new creative talent.
“We built a model that was uniquely around him, as opposed to forcing him through our structure. And we’ve since used that as a playbook to bring in new creatives.” McCarthy cited Jez Butterworth as “one of the most recent ones, where we’ve seen great success” with The Agency and MobLand, which was the biggest global premiere ever on Paramount+.
“We love the relationship with Taylor, we’re welcoming in new creatives, and we definitely will continue to use 101 as a preferred partner, but we like the relationship we have today.”
Paramount had solid quarterly earnings but its co-CEOs noted a push to conserve cash in an uncertain macroeconomic climate, on top of steep cuts it’s made ahead of its planned merger with Skydance. Sheridan shows, filmed on location with a roster of A-list stars, are expensive. McCarthy specified at several other points during the call that he was referring mostly to “non-content” costs that have been under the microscope, although co-CEO Brian Robbins noted that the studio had lowered the average production cost of Paramount Pictures‘ films by 35% over last 24 moths.
Paramount said it still anticipates its sale to Skydance will close in the first half of the year. The deal for the CBS parent requires FCC approval.
