Skydance and their leader David Ellison have announced a merger/takeover of Paramount Global and it’s assets. The seven-month odyssey ends with Skydance coming to rescue Paramount from other prospective buyers who certainly would have gutted the company. The company’s board of directors approved the merger on Sunday. It’s a two-part transaction: first the acquisition of National Amusements Inc., which controlled nearly 80% of Paramount’s shares, then a full merger between the companies.
Ellison will be chairman and CEO with Jeff Shell leading the company as president. They’ll take over the rotating door of three executives that were in an “Office of the CEO” to run the company. The merger should close in the first half of 2025 and sees CBS, Nickelodeon, and Paramount Pictures in new hands for the first time since the 1980s.
Here’s what Skydance had to say about the merger.
Skydance said it will “reposition Paramount to improve profitability, foster stability and independence for creators, and enable more investment in faster growing digital platforms.”
The deal followed months of would-they, won’t-they wrangling between different companies. it looked like Skydance would merge much earlier, but Redstone investing pulled out at the last minute. This new deal includes a 45-day “go-shop” period where Paramount could technically find a better deal, but any new buyer would have to at least match Skydance’s offer. Here’s what Shari Redstone, the former owner of Paramount had to say.
“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. 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.”
Finally, here’s what David Ellison had to say about the deal.
“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.”
We’ll have to see how this deal affects the day-to-day operations of Paramount today and in the future.
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