Paramount Global will merge with Skydance, concluding months of intricate negotiations and marking the Redstone family’s exit from controlling the iconic movie studio and media company. Paramount’s special committee approved the merger on Sunday, following a renewed preliminary agreement between Shari Redstone’s National Amusements, the controlling shareholder of Paramount, and Skydance. A previous deal had stalled weeks earlier.
Under the new agreement, the buying consortium will invest over $8 billion into Paramount and acquire National Amusements. The merger is subject to regulatory approval and includes a 45-day “go-shop period” during which the Paramount special committee can seek other offers.
This merger represents a significant shift in ownership for Paramount and the broader Hollywood landscape. The Redstone family has long controlled the studio, renowned for films like “The Godfather,” “Top Gun,” and “Forrest Gump,” as well as the CBS broadcast network and cable TV channels such as MTV and Nickelodeon.
David Ellison, founder of Skydance and son of Oracle founder Larry Ellison, will lead the combined company as CEO. Former NBCUniversal president Jeff Shell will serve as president.
Paramount’s shares were trading at roughly $12 per share premarket Monday. The stock has experienced volatility over the past year due to a weak advertising market and the continued decline of cable TV subscribers. Additionally, its streaming platform, Paramount+, has yet to achieve profitability.
Late last year, Paramount began exploring deals with potential buyers, including Warner Bros. Discovery. Paramount also faces a substantial debt load of nearly $15 billion. Skydance and Paramount moved closer to a deal in recent months, during which time Bob Bakish stepped down as CEO of Paramount and was replaced by a trio of company leaders.
The parties initially agreed to deal terms in early June, but the agreement was halted by Redstone a week later. Subsequently, Paramount’s “Office of the CEO” — CBS CEO George Cheeks, Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins — initiated a plan to restructure the company by reducing debt and seeking a streaming joint venture partner. Recently, other interested bidders have emerged, including media mogul Barry Diller.
