Paramount Global has finalized a merger with Skydance, concluding a prolonged negotiation period.
David Ellison, founder of Skydance and son of billionaire Larry Ellison, will lead the newly combined entity as CEO. The merger, which includes an $8 billion investment by RedBird Capital Partners and KKR, is expected to close in Q3 2025, subject to regulatory approval.
The deal is structured to provide cash or stock to Paramount’s class A and B shareholders and includes a $1.5 billion capital injection into Paramount’s balance sheet. Jeff Shell, former NBCUniversal CEO and current RedBird executive, stated the merger signifies a new era for Paramount.
It’s a new Paramount, it’s not just a catchphrase,” said Shell, on a call with investors Monday. “We think it’s going to be a new day for these combined assets.”
Shell added, “It’s been a long time since a creative executive ran one of the big Hollywood companies. And I think it’s really important when creative is the core.”
This merger signifies the end of the Redstone family’s, most notably Sumner and since 2020, daughter Shari, control over Paramount, which includes CBS and other cable networks. The Redstones have controlled Paramount — known for films such as The Godfather, Top Gun, the Mission Impossible franchise, Iron Man, Saving Private Ryan, Apocalypse Now, Rosemary’s Baby, Forrest Gump, Harold and Maude, Black Sunday and Raiders of the Lost Ark — as well as the CBS and cable TV networks including MTV, BET and Nickelodeon – since 1994.
As you know, my father built Viacom and CBS by bringing together a group of the best assets in media, news, and entertainment,” Shari Redstone said in a memo to employees late Sunday. “While people often debated whether content or distribution ruled the day, my father was governed in all of his decisions by his belief that content was indeed king.”
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This strategic move marks a significant shift for Hollywood, with Skydance’s Ellison now among the industry’s elite. The merger aims to leverage Paramount’s assets, including its film and TV properties, to adapt to the evolving media landscape. The merger allows for a 45-day “go-shop” period for other offers, with a $400 million breakup fee if Paramount opts for a different deal.
The key thesis behind this transaction is our desire to inject Skydance as a pure play content company to double down on Paramount’s prowess as one of the world-class storytelling enterprises,” Ellison said on Monday’s call.
He also established a goal to re-position Paramount as a “tech hybrid to meet the demands and needs of the evolving marketplace.”
Following the transaction, Skydance will hold a majority of Paramount’s class B shares, valuing Skydance at $4.75 billion. This merger not only signifies a leadership change but also a strategic pivot towards content-driven growth in an evolving entertainment industry.
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