In a significant move, Paramount and Skydance Media have agreed to a transaction that will create a combined company worth approximately $28 billion. The deal, which adds to the recent string of high-profile mergers in the entertainment industry, aims to fortify Paramount for the future and ensure that content remains a top priority.
Shari Redstone’s National Amusements, which owns the majority of Paramount’s voting shares, has agreed to the terms of the deal. The merger is seen as a way to preserve Paramount’s century-old legacy in Hollywood and CBS’s place in the entertainment world.
The deal includes a 45-day period in which Paramount’s board is allowed to search for a better offer. If approved by regulators, David Ellison, founder of Skydance, is set to become chairman and CEO of the combined company, New Paramount.
Paramount has faced challenges in recent years as the traditional cable model has declined in popularity due to the rise of streaming services such as Netflix, Hulu, and Max. Despite launching its own streaming platform, Paramount+, the company has struggled to stay competitive.
The deal is expected to bring a fresh perspective to Paramount, with Ellison describing the planned merger as a “defining and transformative time” for the industry. He expressed gratitude to Shari Redstone and her family for entrusting him with the opportunity to lead Paramount.
The combined company plans to energize the business by leveraging contemporary technology, new leadership, and a creative discipline to enrich generations to come.
