Home News Paramount and Skydance Finalize Merger

Paramount and Skydance Finalize Merger

This follows a dramatic turnaround after previous negotiations between Redstone and Ellison, the son of Oracle co-founder Larry Ellison, collapsed last month.

By Inc.Arabia Staff
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Paramount Global, the parent company of CBS and MTV, has finalized a merger with Skydance Media, bringing an end to the era of Redstone family control. This deal transfers the reins of the major Hollywood studio to independent producer David Ellison, concluding a protracted and contentious merger process.[1]

In this intricate arrangement, Paramount Chair Shari Redstone will sell her family’s National Amusements Inc., which holds about 77% of the voting stock in Paramount, to Ellison for $2.4 billion.

This follows a dramatic turnaround after previous negotiations between Redstone and Ellison, the son of Oracle co-founder Larry Ellison, collapsed last month.

The merger involves the Ellison family and RedBird Capital Partners injecting over $8 billion into the business. This includes $1.5 billion to reduce Paramount’s debt and $4.5 billion to purchase Paramount shares. Nonvoting Class B shareholders will receive $15 per share in cash or stock, while Class A shareholders, excluding the Redstone family, will receive $23 per share.

 Following the merger, the Ellison-led group will control approximately 70% of Paramount’s outstanding shares. Sellers have 45 days to explore better offers.

David Ellison, 41, will become chairman and CEO, with former NBCUniversal executive Jeff Shell as president.

The merger presents Paramount with a chance for rejuvenation amid its financial difficulties, including over $14 billion in debt and stiff competition in the streaming sector. The company reported a net loss of $554 million during the first quarter (Q1) of this year.

Paramount, renowned for producing classics like Titanic and The Godfather, has been under Redstone family control for three decades. However, its stock has more than halved since CBS Corp. and Viacom Inc. merged in 2019 to form Paramount Global.

Shari Redstone, 70, pushed for the Skydance merger, believing it was in the best interest of her family and the company’s legacy despite opposition from management and other shareholders.

Currently, Paramount is managed by a committee of three senior executives following the replacement of CEO Bob Bakish in April.

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