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Skydance Media has entered into a definitive agreement with Paramount Global to form “New Paramount,” capping off months of negotiations, bidding wars and public speculation.
The potential move would have a lasting impact on Paramount’s assets, forever changing the company’s TV and streaming portfolio. It would also end the Redstone family’s three-decade ownership of Paramount, with Sumner Redstone acquiring it in 1994 and his daughter, Shari, taking over in 2019.
What to know about the deal:
The merger, which is expected to close in 2025, will take place in two steps.
First, Skydance Media, with financial backing from the private investment firms RedBird Capital and KKR, will pay $2.4 billion for National Amusements Inc., the holding company that owns 77% of Paramount’s Class A shares. Then, Skydance will merge with Paramount in an all-stock transaction that values Skydance at $4.75 billion.
Skydance Media will also invest up to $6 billion in the newly combined operation: $1.5 billion of which is earmarked for paying down Paramount’s debt, while the remaining $4.5 billion can be used to buy out existing Paramount shareholders.
According to the company, Class A stockholders will receive $23 per share, while Class B stockholders will cash out at $15 per share. The total value of the deal is more than $8 billion, an increase from Skydance Media’s May offer of $5 billion.
Skydance Media is owned by David Ellison, the son of Oracle founder Larry Ellison. Following the merger, Ellison will serve as the chief executive and chairman of the combined company. Meanwhile, Jeff Shell, who was ousted as NBCUniversal CEO in 2023 after admitting to an “inappropriate relationship” with a colleague—and later joined RedBird Capital—will serve as president of the company.
The tie-up comes after a monthslong bidding war over Paramount, whose assets include the Paramount+ streaming service and networks such as CBS, MTV, BET and Nickelodeon.
What this means for Paramount:
Skydance Media’s acquisition of Paramount will likely result in a paring down of the Paramount portfolio, an expedited path to profitability for Paramount+ and an increased focus on bundling and partnerships, according to analysts.
