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After speculation, Paramount and Skydance Media are merging in an $8 billion move.
After seven months of negotiations, Skydance Media officially acquired the controlling shareholder of Paramount Global, National Amusements Inc. Deadline added that the acquisition was given a seal of approval from Paramount's board of directors. A formal announcement could come on Monday, July 8.
The agreement includes a 45-day “go-shop” provision. This allows National Amusements Inc. chief Shari Redstone to field other offers. There are other interested parties, including Apollo Global Management, Barry Diller, and Edgar Bronfman Jr., per Deadline.
Later in the evening, it was reported that the Paramount and Skydance Media merger is official in an $8 billion deal. David Ellison will become chairman and CEO of the new and improved Paramount, with Jeff Shell as president.
“In 1987, my father, Summer Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global,” Shari Redstone said (via Variety). “He had a vision that ‘content was king' and was always committed to delivering great content for all audiences around the world.
“That vision has remained at the core of Paramount's success and our accomplishments are a direct result of the incredibly talented, creative, and dedicated individuals who work at the company. Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king,” Redstone continued.
Redstone concluded, “Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment. As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”
What does the Paramount and Skydance merger mean?
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The merger is a big move that will take Paramount, CBS, and former Viacom assets out of the Redstone family. Skydance reportedly said that the deal has an enterprise value of $28 billion (Skydance is valued at $4.75 billion, per Variety).
David Ellison and Co. have been working on this deal for over 10 months. However, it will not become a done deal until the “first half” of 2025. If it comes through, Skydance will have 70% of the equity and ownership of all Class A shares.
Still, Paramount Global can shop the deal around for 45 days. Other parties can make offers, so it remains to be seen if anyone will try to match it.
Paramount has been a mainstay in Hollywood for decades. They have had a successful year with movies like Mean Girls, Bob Marley: One Love, and A Quiet Place: Day One coming out. Coming up, they have Transformers One, Smile 2, Gladiator 2, and Sonic the Hedgehog 3 coming to theaters.
Skydance Media was founded 18 years ago in 2006 by David Ellison. They have worked on movies, including some of Paramount's, such as G.I. Joe: Retaliation, Star Trek Into Darkness, World War Z, and the recent Mission: Impossible movies. They have also produced Top Gun: Maverick, Air, and The Family Plan.
Their upcoming slate includes Spellbound, The Old Guard 2, and the upcoming Mission: Impossible 8.
