Entertainment
Paramount, Skydance merger deal ends Redstone era
Paramount Global and Skydance Media have agreed to merge, both sides said in a statement late Sunday, putting an end to months of negotiations.
Seen as the smallest among power players in the world of television and streaming, Paramount has been courted in recent times.
The merger marks a key step forward for movie studio Skydance, which co-produced the 2022 Tom Cruise blockbuster Top Gun: Maverick with Paramount.
The deal sees an investment of over $8 billion into Paramount and the acquisition of National Amusements, according to the companies.
In a two-step process, Skydance and its partners will acquire National Amusements — which holds the Redstone family’s controlling stake in Paramount — for $2.4 billion.
Skydance and Paramount will then merge, with $4.5 billion offered in cash or stock to shareholders and $1.5 billion to be added to Paramount’s balance sheet.
The Skydance investor group involves the Ellison family, including Oracle co-founder Larry Ellison and his son David.
It also includes investment firm RedBird Capital Partners.
Both sides estimate that the new company will be worth some $28 billion once the merger is completed.
David Ellison is expected to become chairman and chief executive officer, while former NBCUniversal CEO Jeff Shell will be president.
The transaction is expected to close in the first half of 2025, said the companies.
The agreement with Skydance, nevertheless, allows for a 45-day period during which a special committee of Paramount’s board of directors may consider other offers to buy out or merge with the company.
Formerly known as ViacomCBS, Paramount Global’s holdings also include Comedy Central, as well as Paramount’s film and television studios.
Shortly after markets opened in New York, Paramount’s shares slumped 1.0 percent.