Paramount Global Merges with Skydance Media

The Ellison Family and RedBird Capital Partners invest over $8 billion to form “New Paramount.”

License Global

July 8, 2024

3 Min Read
Paramount logo
Paramount logoParamount

Skydance Media and Paramount Global have announced an agreement to form next-generation media and technology leader, “New Paramount,” in a two-step transaction, including the acquisition of National Amusements, Inc. – which holds a controlling share in Paramount – and the subsequent merger of Skydance and Paramount Global.

“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,” says David Ellison, founder, chief executive officer, Skydance. “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.”

According to the announcement, the transaction will maintain the 100-year legacy of one of the most iconic production companies worldwide and CBS’s stature as a source of news and entertainment while creating immediate value, upside opportunity and stability for all Paramount stockholders.

With a 15-year history of partnering on highly successful projects, the Skydance-Paramount combination will unite key intellectual property and enhance Paramount’s exposure in cutting-edge and next-generation digital businesses. Skydance’s pool of in-house creative animation talent led by pioneer, John Lasseter, will expand Paramount’s animation capabilities and consumer products opportunities over the long term.

“In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global,” says Shari Redstone, chair, Paramount Global and chair, president, chief executive officer, National Amusement. “He had a vision that ‘content was king’ and was always committed to delivering great content for all audiences worldwide. 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 long-time 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.”

Marking the end of the “Redstone Era,” New Paramount will herald a new chapter by creating a premier, creative-first destination for storytellers dedicated to top-quality content that is positioned to improve profitability and foster stability and independence for creators. The transaction will stabilize and strengthen Paramount as a world-class media enterprise focusing on technological advancements across multiple entertainment platforms, including animation, gaming, film, sports, news and television.

Skydance now offers Paramount investment and entry into burgeoning new entertainment and media verticals with clear economic upsides. For example, Skydance brings state-of-the-art interactive and gaming proficiencies, including two in-house game developer studios with industry-leading franchises, such as Skydance’s upcoming console games in Marvel and Star Wars and the 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. As a long-term global rights buyer with expansive distribution across both direct-to-consumer and linear channels, Skydance is set to significantly enhance Paramount’s value proposition with the transaction.

About the Author(s)

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