In a strategic and unexpected move, Paramount has ended its decades-long relationship with WPP Media, its media agency of record, replacing it with Publicis as part of a broader cost-cutting initiative. The decision comes as Paramount continues merger discussions with Skydance Media and its private equity partner RedBird Capital, with the $8 billion deal currently under government review.
Sources indicate that the change was not preceded by a typical review period, signaling an urgent internal strategy shift. The agency transition is reportedly aimed at streamlining operations and improving cost efficiency across Paramount’s global advertising network, including Paramount+ and major theatrical releases such as Mission: Impossible.
A Sudden Shift Without Precedent
WPP Media, previously operating under the GroupM brand, had been a trusted media partner for Paramount Pictures for over 20 years. Its abrupt dismissal came as a surprise both internally and across Madison Avenue, where such changes typically follow structured evaluations. Replacing WPP with Publicis was described as a business decision designed to achieve significant financial savings and operational benefits.
The decision appears to have been led by John Halley, President of Paramount Advertising, who oversees both sell-side strategies and promotional efforts for the company’s content portfolio. Known for challenging industry norms, Halley has also moved away from Paramount’s traditional upfront events in favor of smaller, talent-focused gatherings.
Merger with Skydance Still in Progress
The potential merger with Skydance Media, which initially appeared inevitable, has slowed due to various political and regulatory hurdles. Though Skydance remains the front-runner in the deal, the Federal Communications Commission (FCC) has yet to begin a substantive review. Meanwhile, Paramount has announced its annual shareholder meeting will be held on July 2, with plans to expand its board of directors.
While shareholder approval is not required—due to the controlling stake held by Shari Redstone’s National Amusements—the merger still depends on regulatory greenlights. Insiders suggest that Skydance and RedBird may have been consulted on the agency decision, given the implications for future marketing strategies.
Trump Lawsuit and External Pressures
Complicating the landscape is a $20 billion lawsuit filed by former President Donald Trump against CBS News, a Paramount-owned entity. The legal battle, centered on a 60 Minutes interview with Vice President Kamala Harris, has entered mediation, but a settlement has yet to be reached despite an eight-figure offer from Paramount.
The legal and political tensions surrounding the case may be influencing the pace of the merger, casting uncertainty over an otherwise strategic business realignment.
