Paramount Global to Merge with Skydance, Redstone Family Steps Back
- Paramount has agreed to merge with Skydance, bringing significant changes to the ownership of the iconic studio and CBS network.
- This merger ends the long-standing control of the Redstone family over Paramount and its assets.
- Industry experts suggest that this merger could reshape the landscape of media and entertainment.
Paramount Global has finalized a merger agreement with Skydance, concluding extensive negotiations that will see the Redstone family relinquish control of the iconic movie studio. The deal, approved by Paramount's special committee, comes shortly after Shari Redstone's National Amusements reached a preliminary agreement with Skydance, known for its blockbuster "Top Gun: Maverick." The merger values National Amusements at $2.4 billion, including $1.75 billion in equity. David Ellison, founder of Skydance, will assume the role of CEO of the newly formed entity, while Jeff Shell, former CEO of NBCUniversal, will serve as president. This merger represents a significant shift in Paramount's ownership structure, which has been dominated by the Redstone family, known for producing classics like "The Godfather" and "Forrest Gump." Shell emphasized the importance of having a creative executive at the helm of a major Hollywood company. Executives from RedBird and Skydance highlighted the synergies between the two companies, particularly in relation to CBS and its partnership with the NFL. Ellison stated that the merger aims to enhance Paramount's reputation as a leading storytelling enterprise. Meanwhile, Paramount's current leadership will continue operations until the deal is finalized, maintaining planned layoffs and cost-cutting measures. The agreement allows a 45-day window for other potential bidders to present offers, with Skydance valued at $4.75 billion. Equity holders are set to receive 317 million class B shares, priced at $15 each, as part of the merger.