LOS ANGELES and NEW YORK—Paramount Global has agreed to merge with Skydance Media to form “New Paramount” in an $8 billion deal that includes all of Paramounts media assets as well as the acquisition of National Amusements, Inc. (NAI) which holds the controlling share stake in Paramount.
The announcement, made over the weekend, ends months of endless drama and speculation over the future of Paramount, which counts the iconic Hollywood brand as well as CBS and its Paramount+ streaming service among its main assets. With pressure to make the company more competitive in the streaming sector and improve its film business profitability, Paramount has spent months trying to find a new suitor to strengthen its market position amid rising skepticism that its current leadership under the Redstone family would be able to keep up in a rapidly changing media landscape.
The deal values the company at $28 billion with $2.4 billion allocated to acquiring NAI and $4.75 billion to buy Paramount Global in an all stock transaction. New Paramount will be led by Skydance Founder and CEO David Ellison as Chairman and Jeff Shell as its new Chief Executive Officer and Jeff Shell as President. Shell is a former CEO of NBCUniversal.
“This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy,” said Ellison. “I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”
Shari Redstone, Chair of Paramount Global and Chair, President, and CEO of National Amusements, Inc. said, “In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global. 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. 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.”
The transaction, which was approved by a special committee by Paramount’s board of directors formed in January, is subject to regulatory approval.
Skydance, founded by Ellison in 2010, is a diversified media company with its hands in film, television, gaming, animation and sports. In total, Skydance’s films have earned more than $8 billion at the worldwide box office. Skydance Television is a leading supplier of premium scripted content across a range of platforms including Netflix, Amazon Prime Video, and Apple TV+.