Skydance Media and Paramount Global have entered into an agreement by which the US film and TV production company is to become the holder of a controlling stake in the global media conglomerate. The transaction includes two steps. First, Skydance will acquire National Amusements (NAI), which holds 77% of Paramount Global’s voting shares and is owned by Shari Redstone. Subsequently, Paramount Global and Skydance will merge. As a result, Skydance will own 100% of new Paramount Class A shares and 69% of new Paramount outstanding Class B shares.
The announcement was made on the night of Sunday, July 7, following several months of negotiations. The transaction, which is subject to the approval of the pertinent regulatory agencies, values the new Paramount at USD 28,000 million and is expected to close in the first half of 2025.
Paramount is a leading global company whose portfolio includes movie studio Paramount Pictures, TV channels and networks such as CBS, BET, Showtime, Nickelodeon, MTV, Comedy Central and Smithsonian Channel, as well as streaming platforms Paramount+ and Pluto TV. In Latin America, it is also the owner of Free-to-Air channels Telefé (Argentina) and Chilevisión (Chile).
Skydance says it expects not only to improve and strengthen Paramount, but also to reposition it and to focus on the company’s profitability and stability. “It’s a new Paramount; it’s not just a catchphrase,” asserted Jeff Shell, executive at RedBird Capital Partners, one of Skydance’s investors, at the investor conference held on July 8.
Shari Redstone, Chair of Paramount Global and CEO of National Amusements, 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.”
In connection with the merge, David Ellison, founder and Chief Executive Officer of Skydance, said: “This is a defining and transformative time for our industry. 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.” According to the press release, David Ellison is to become Chairman of the Board and CEO of the new Paramount.
It is worth mentioning that the agreement includes a clause by which in the event that Paramount gets a better proposal within a 45-day period, it may accept the new offer and decline Skydance’s.
