Paramount Global, a prominent Hollywood company, has agreed to a merger with the independent film studio Skydance, ending its ties with the Redstone family. The deal, valued at $28 billion, involves Skydance investing $8 billion in the new company and an additional $2.4 billion to acquire National Amusements, which holds nearly 80% of voting shares in Paramount. This agreement comes after months of negotiations and marks the end of the Redstone family's control over Paramount. Skydance, led by David Ellison, plans to enhance and reinvigorate Paramount and CBS brands, invest in digital platforms, and strengthen Paramount's balance sheet. The new company, to be led by Ellison as CEO and former NBCUniversal chief Jeff Shell as president, aims to become a premier destination for storytellers and top-quality content. The deal is backed by several private equity firms, including RedBird Capital Partners. The transaction is expected to close in the first half of 2025, subject to regulatory approvals. The merger will result in a "New Paramount" valued at $28 billion, with Skydance founder David Ellison as CEO. The deal also includes plans to streamline operations, reduce the workforce, and explore opportunities to transform global streaming. The new owners intend to infuse Paramount with stability and independence for creators, positioning it to attract top talent and make it more competitive. The merger marks the end of an era for Paramount Global and sets the stage for a new chapter under the leadership of Skydance and RedBird Capital.
