Skydance Media to acquire Paramount and merge as New Paramount
Skydance Media will acquire Paramount’s owner, National Amusements, and merge Skydance’s business with Paramount Global to form New Paramount.
The deal will take place through a two-step transaction, including the acquisition of National Amusements, which holds the controlling share stake in Paramount, and a subsequent merger of Skydance and Paramount Global.
New Paramount will be a “premier, creative-first destination for storytellers, dedicated to top-quality content and will be positioned to improve profitability, foster stability and independence for creators, and enable more investment in growth areas,” according to a press release issued by Skydance.
The transaction will “stabilise and strengthen Paramount as a world-class media enterprise, with a focus on technological advancements, across multiple entertainment platforms including animation, gaming, film, sports, news and television”.
New Paramount will be led by David Ellison as chairman and CEO, and Jeff Shell as President.
Shari Redstone, chair of Paramount Global and chair, President, and CEO of National Amusements, Inc. said of the sale: “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.”
Last month, Redstone announced NAI had ended six months of merger negotiations after reaching an impasse.
Skydance said this transaction “preserves the over 100-year-old legacy of Paramount as one of Hollywood’s most iconic production companies and CBS’s stature as a cherished source of news and entertainment”.
Skydance brings an “exceptional pool of in-house creative animation talent, led by pioneer John Lasseter,” and two in-house game developer studios with industry-leading franchises, such as Skydance’s upcoming console games in Marvel and Star Wars and hit VR game, The Walking Dead.
Skydance also brings a partnership with the NFL,” which complements the resources of CBS and its local affiliates, creating a premier global multi-sports studio.”
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.”
In a note sent to Paramount Global staff and seen by Mumbrella, Redstone said she expects the deal to be completed in the first half of 2025.
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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