Paramount Fires Media Agency Of Record In Cost-Saving Move Amid Skydance Merger Review

EXCLUSIVE: In a move that blindsided many staffers, Paramount has fired its longtime media agency of record in a cost-saving move as its proposed merger with Skydance Media continues to gestate.

WPP Media, formerly known as GroupM before a recent rebrand, had worked with Paramount Pictures for more than two decades, dating back to when the studio was part of Viacom. Three sources familiar with the situation told Deadline the agency was fired and replaced by Publicis, another of the large agency players. The switch, which was not preceded by the customary review period (when an incumbent has a chance to retain the business), is going to result in significant cost savings and has been characterized as a business decision. Executives relayed the news at Paramount and externally last Friday.

Total annual billings from Paramount, for international ads for Paramount+ (Horizon Media handles the streamer domestically) as well as global campaigns for films like the latest Mission: Impossible, are in the range of $600 million, one source said. It wasn’t immediately clear how much of a savings would be created, and sources indicated other factors were also considered in terms of workflow and strategy.

Publicis did not respond to a request for comment. Reps from Paramount, Skydance and WPP Media declined to comment.

The $8 billion merger of Skydance and Paramount, which seemed a sure bet at the start of the year, has entered murkier territory thanks in large part to President Donald Trump’s animus toward CBS News.

Sentiment on the Paramount lot, Deadline has learned, was less focused on the agonizingly slow crawl of the merger process and more about the changing of the guard with a longtime third party vendor. The notion of swapping out an agency of record without offering a warning is virtually unheard of on Madison Avenue. While clients are more antsy than ever and have jumped ship on their agencies in an effort to save money, gain efficiency or both, it usually follows a deliberate path.

Skydance, along with private equity firm RedBird Capital, sealed their merger proposal last August. Mindful of restrictions against “gun-jumping” by parties involved in mergers, the company has maintained a fairly low profile as the review has dragged on. On a matter as consequential as the change of agency, sources indicated to Deadline, Skydance and RedBird could have been consulted about the switch under the terms of the merger agreement.

Paramount on Monday announced it would hold its annual shareholder meeting on July 2 and also add three people to its board of directors. The merger does not require approval from shareholders given that Shari Redstone and her family control a large majority of the company’s shares. The FCC is reviewing the transaction, but indications are that the review hasn’t gotten under way with any degree of substance. Trump, meanwhile, is continuing to pursue his $20 billion lawsuit against 60 Minutes for the way the news magazine edited and promoted an interview with Democratic presidential nominee Kamala Harris.

Attorneys for Trump have entered mediation with the Paramount camp, but a recent 8-figure offer from Paramount to settle the case did not yield an agreement.