Skydance Media and Paramount Global Announce Merger

Skydance Media and Paramount Global have agreed to merge, marking a significant development for one of Hollywood’s oldest studios. The companies revealed the news late on Sunday, outlining a two-step process for the merger.

Acquisition and Merger Details:

1. Acquisition of National Amusements:
   • Skydance and its deal partners will acquire National Amusements, which holds the Redstone family’s controlling stake in Paramount.
   • The acquisition price is set at $2.4 billion in cash.
2. Merger with Paramount:
   • Following the acquisition, Skydance will merge with Paramount.
   • Skydance will offer shareholders $4.5 billion in cash or stock.
   • An additional $1.5 billion will be provided to strengthen Paramount’s balance sheet.

Following the announcement, shares of Paramount, the owner of the CBS broadcast network, rose more than 4% in pre-market trading.

Significance of the Deal:

This merger signifies the end of an era for Shari Redstone and the Redstone family. Shari’s father, Sumner Redstone, transformed the family’s chain of drive-in movie theaters into a media empire encompassing Paramount Pictures, the CBS broadcast network, and cable television networks like Comedy Central, Nickelodeon, and MTV.

Shari Redstone, chair of Paramount and National Amusements, emphasized the importance of fortifying Paramount for the future while ensuring that content remains central to the company’s strategy, echoing a phrase her father coined.

Combined Entity Leadership:

• David Ellison, the 41-year-old founder of Skydance and tech scion, will become the chairman and chief executive of the new Paramount.
• Jeff Shell, former chief executive of NBCUniversal, will take on the role of president.

Impact on the Film Industry:

The merger combines Paramount, home to iconic films such as “Chinatown,” “The Godfather,” and “Breakfast at Tiffany’s,” with Skydance, its financial partner on several major recent films, including “Top Gun: Maverick,” “Mission: Impossible-Dead Reckoning,” and “Star Trek Into Darkness.”

This strategic move aims to bolster Paramount’s position in the ever-evolving entertainment industry, ensuring the legacy studio remains competitive and content-driven in the future.