Paramount Pictures acquired by Skydance Media for $8 billion

David EllisonSkydance Media to acquire Paramount Pictures for $8 billion. The two companies have been trying to reach an agreement for the past few months and have finally reached an agreement.

The board of directors signed off on a two-part transaction: first, the acquisition of National Amusements Inc., the entity run by Shari Redstone that had controlled nearly 80 percent of Paramount’s voting stock. That transaction would be followed by a full merger.

Ellison will assume the roles of chairman and CEO, as well as former head of NBCUniversal Jeff Shell will lead the company as president.

The deal is expected to close in the first half of 2025. In a press release, Skydance said it will “reposition Paramount to improve profitability, promote stability and independence for creators, and enable greater investment in faster-growing digital platforms.”

The deal includes a 45-day “go-shop” period, “during which alternative offers may be considered. A handful of bidders, including Barry Diller and Edgar Bronfman Jr., have expressed interest in a controlling stake in Paramount, but it is unclear whether they will match the offer accepted by Skydance.”

Shari Red Stone said in a statement: “In 1987, my father, Sumner Redstone, acquired Viacom and began to assemble and grow the businesses now 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 heart of Paramount’s success and our successes 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 strengthen Paramount for the future, ensuring that content remains king. Our hope is that the Skydance transaction will position Paramount to continue to be successful in this rapidly changing environment.

“As a long-time production partner of Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next phase of growth. We believe in Paramount and always will.”

Skydance and Paramount have had a relationship spanning 15 years, and it is noted that Skydance’s “exceptional group of creative talent within animation, led by pioneer John Lasseter,” will position the company as a leading force in the animation industry.

Ellison said: “This is a transformative and pivotal moment for our industry and for the storytellers, content creators and financial stakeholders who have invested in Paramount’s legacy and the longevity of the entertainment economy.

“I am incredibly grateful to Shari Redstone and her family for trusting us with the opportunity to lead Paramount. We are committed to energizing the company and strengthening Paramount with contemporary technology, fresh leadership and a creative discipline that aims to enrich future generations.”

Gerry Cardinalfounder and managing partner of RedBird Capital, described the deal as a “recapitalization of Paramount and a combination with Skydance.” The transaction will be “a significant moment in the entertainment industry at a time when traditional media companies are increasingly challenged by technological disintermediation.

“As one of Hollywood’s most iconic brands and media libraries, Paramount has the intellectual property foundation to ensure longevity through this evolution, but it will take a new generation of visionary leadership coupled with experienced operational management to navigate this next phase.

“RedBird is making a substantial financial investment in partnership with the Ellison family because we believe the pro forma company under this management team will be the blueprint for how these traditional media businesses should be managed in the future.”

Maybe the studio will actually be able to get a new Star Trek movie off the ground under new management.