In a significant development reshaping the entertainment industry, Skydance Media, led by David Ellison, has finalized an agreement to acquire control of Paramount Global. This landmark deal, subject to regulatory approval, sees Skydance acquiring Shari Redstone’s majority stake in National Amusements, thereby gaining control of Paramount, which encompasses Paramount Studios, Paramount+, CBS, and prominent cable channels like Nickelodeon and MTV.
The acquisition culminates months of negotiations and speculation, punctuated by earlier setbacks that threatened to derail the deal. Skydance’s consortium, in collaboration with Gerry Cardinale’s RedBird Capital, ultimately reached an agreement that secured Redstone’s endorsement.
Upon completion of the transaction, Paramount will subsequently merge with Skydance, with David Ellison assuming the role of CEO. Jeff Shell, the former NBCUniversal CEO currently associated with RedBird, is slated to oversee Paramount’s day-to-day operations as its president.
To address concerns from non-voting shareholders, Skydance enhanced its offer, aiming to ensure equitable value distribution. The deal structure includes a $2.4 billion cash investment for acquiring National Amusements and $4.5 billion in stock/cash merger consideration for Paramount’s publicly traded Class A and B shares. Additionally, $1.5 billion in primary capital will bolster Paramount’s balance sheet.
The transaction values Skydance’s studio at approximately $4.75 billion, underscoring the strategic and financial implications of the merger. Shari Redstone expressed confidence in Skydance’s capability to fortify Paramount’s future amidst industry transformations, emphasizing continuity in delivering quality content.
“In 1987, my father, Sumner Redstone, laid the foundation for what Paramount Global has become today,” stated Redstone. “As the industry evolves, we aim to strengthen Paramount’s legacy while upholding its commitment to exceptional content creation.”
David Ellison echoed these sentiments, highlighting Skydance’s longstanding partnership with Paramount and its strategic vision to drive growth through innovation and creative excellence.
“This acquisition marks a transformative moment for Paramount and the broader entertainment economy,” Ellison remarked. “We are honored by the trust placed in us by Shari Redstone and her family, and we are dedicated to revitalizing Paramount with modern technology, dynamic leadership, and a renewed focus on enriching global audiences.”
The deal represents a pivotal step in Skydance’s expansion strategy, positioning Paramount Global for sustained success in a rapidly evolving media landscape.
