Paramount Global to Merge with Skydance Media in $28 Billion Deal

Paramount Global, one of Hollywood’s oldest companies, has announced a landmark merger with independent film studio Skydance Media. Under the agreement, Shari Redstone, Paramount’s non-executive chair, will sell her family’s controlling stake in the company, marking a significant shift in ownership.

The complex transaction values the new entity at approximately $28 billion (£21.9 billion), signifying the end of an era for the Redstone family, renowned for transforming a chain of drive-in cinemas into a vast media empire. Paramount Global’s portfolio includes iconic brands like Paramount Pictures, CBS, Comedy Central, Nickelodeon, and MTV.

In a statement, Shari Redstone expressed optimism about the future, stating, “Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment.”

Skydance Media, known for recent box office hits like “Top Gun: Maverick” and “Star Trek Into Darkness,” will invest around $8 billion in Paramount as part of the merger. This includes a $2.4 billion acquisition of National Amusements, Paramount’s controlling entity.

The merger, expected to close by summer next year, aims to bolster Paramount’s position amidst industry challenges. Paramount Global, founded in 1914, has produced legendary films such as “The Godfather,” “Star Trek,” and “Mission: Impossible.” Despite its storied history, the company has faced financial struggles, with its shares declining by over 75% in the past five years.

Owned by David Ellison, son of Oracle founder Larry Ellison, Skydance’s acquisition of Paramount signals a strategic alignment in the competitive entertainment landscape, particularly amid the ongoing digital streaming revolution.

The merger follows eight months of negotiations, during which Redstone explored various partnership options, including discussions with Sony and private equity firm Apollo. Earlier this year, Paramount’s CEO Bob Bakish departed amid disagreements with Redstone over the Skydance deal.

The deal underscores Paramount’s efforts to adapt and thrive in a rapidly evolving entertainment industry reshaped by digital streaming platforms.

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