Paramount Global has finalized an $8 billion merger agreement with Skydance, concluding months of negotiations.
This deal marks the end of the Redstone family’s control over the historic movie studio and media conglomerate.
Paramount’s special committee endorsed the agreement on Sunday, July 7.
It follows Shari Redstone’s National Amusements, Paramount’s controlling shareholder, securing a preliminary deal with Skydance.
This comes after a similar agreement was halted just weeks before.
The merger involves a consortium of private equity firms, RedBird Capital Partners and KKR, investing over $8 billion into Paramount and acquiring National Amusements.
“It’s a new Paramount; it’s not just a catchphrase”
The transaction values National Amusements at $2.4 billion, including $1.75 billion in equity.
Class A shareholders of Paramount will receive $23 per share in cash or stock, while class B shareholders will receive $15 per share, amounting to $4.5 billion for public shareholders.
Skydance will also contribute $1.5 billion to Paramount’s balance sheet.
Jeff Shell, former CEO of NBCUniversal and current representative of RedBird, said: “It’s a new Paramount; it’s not just a catchphrase.
“We think it’s going to be a new day for these combined assets.”
David Ellison, founder of Skydance, will become CEO of the merged entity, with Shell serving as president.
The merger, pending regulatory approval, is expected to close in the third quarter of 2025.
That includes a 45-day period for Paramount’s special committee to seek alternative offers.
This merger signifies a monumental change in Paramount’s ownership and Hollywood’s landscape.
The Redstone family has long overseen the studio, which is known for classics like “The Godfather,” “Top Gun,” and “Forrest Gump”.
It also produces CBS and various cable networks, including MTV and Nickelodeon.
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David Ellison, 41, son of Oracle founder Larry Ellison, will now lead a major movie studio, bringing a creative perspective to Hollywood’s elite.
Shell said: “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.”
Paramount has faced challenges in recent years, fluctuating business and stock performance.
Its streaming platform, Paramount+, has yet to achieve profitability.
The merger aims to rejuvenate the company, leveraging synergies between Skydance and Paramount and focusing on content, sports, and traditional TV.
The deal, providing a 45-day window for other potential bids, underscores the evolving dynamics of the media industry and Paramount’s strategic direction.
