Hollywood is set to experience one of the biggest shakeups in recent years after Paramount Global and Skydance Media signed an agreement to merge the two entertainment giants. Here’s what you need to know.
What is Paramount Global?
Paramount Global is the entertainment giant that owns several major properties in Hollywood. It owns Paramount Pictures, the movie studio responsible for classics like Top Gun and The Godfather.
Paramount Global also owns the beleaguered Paramount+ streaming service, as well as a number of television properties, including BET, CBS, Comedy Central, MTV, and Nickelodeon.
What is Skydance Media?
Skydance Media is a production company that produces numerous films and television programs. It was founded in 2006 by David Ellison, the son of tech billionaire Larry Ellison.
Skydance has produced some of the recent years’ biggest commercial hits, including Top Gun: Maverick and Mission: Impossible – Dead Reckoning. It has also produced films for streamers, including The Adam Project for Netflix and The Tomorrow War for Amazon Prime Video.
Its television productions include Grace and Frankie, Reacher, and Tom Clancy’s Jack Ryan.
Why are Skydance and Paramount merging?
Paramount Global has been struggling financially for years, especially after the lackluster launch of its Paramount+ streaming service.
By merging with Skydance, Paramount Global will get a much-needed infusion of cash while also combining with a company with which it has years of partnership experience.
What are the terms of the Skydance/Paramount merger?
The deal is two-fold, reports Reuters. Skydance will acquire National Amusements for $2.4 billion in cash. National Amusements is the company that owns Paramount founder Sumner Redstone’s controlling stake in Paramount.
Skydance will then merge with Paramount, giving the company $1.5 billion in cash and offering $4.5 billion in cash or stock to shareholders.
After the merger, the “New Paramount” company will be valued at $28 billion. It will be led by David Ellison as CEO.
What has Paramount said about the deal?
In a press release, Shari Redstone, National Amusements CEO and Chair of Paramount Global 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,” she continued. “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 has Skydance said about the deal?
In a press release, Skydance founder David Ellison said, “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. 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.”
When will the deal close?
Provided there are no hiccups, the Skydance/Paramount Global merger is expected to close in the first half of 2025.