Paramount Global and Skydance Media Announce $28 Billion Merger Deal

Paramount Global, one of Hollywood’s most storied companies, has agreed to merge with independent film studio Skydance Media. This merger, valued at approximately $28 billion (£21.9 billion), involves Shari Redstone, Paramount’s non-executive chair, selling her family’s controlling stake in the company.

The End of an Era for the Redstone Family

This deal signifies the end of an era for the Redstone family, with the late Sumner Redstone having transformed a chain of drive-in cinemas into a vast media empire. Paramount’s assets include iconic television networks such as CBS, Comedy Central, Nickelodeon, and MTV.

“Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment,” said Shari Redstone.

Merging Historic and Modern Cinematic Powerhouses

Paramount, known for classics like “Chinatown” and “Breakfast at Tiffany’s,” will merge with Skydance, its financial partner on recent blockbusters such as “Top Gun: Maverick” and “Star Trek Into Darkness.” Skydance plans to invest $8 billion in Paramount, including $2.4 billion to acquire National Amusements, which controls the group. While National Amusements owns only 10% of Paramount’s shares, it holds nearly 80% of the voting rights.

Strategic Timing and Future Plans

The deal, expected to close by next summer, comes after eight months of negotiations, including talks with other potential partners like Sony and Apollo. Paramount Global’s shares have struggled, falling over 75% in the past five years, underscoring the challenges faced by the entertainment giant in the evolving media landscape.

David Ellison, owner of Skydance and son of Oracle founder Larry Ellison, leads Skydance in this strategic merger. The transaction marks a significant shift in the global entertainment industry, driven by the rise of video streaming and new content consumption trends.