By C. Perera, JadeTimes News
Paramount Global, one of Hollywood's oldest studios, has agreed to a $28 billion merger with independent film studio Skydance Media. In this deal, Shari Redstone, Paramount's non executive chair, will sell her family's controlling stake, creating a new entity valued at approximately $28 billion . This merger signifies the end of an era for the Redstone family, whose late patriarch, Sumner Redstone, built a vast media empire from a chain of drive in theaters.
Paramount's portfolio includes television networks CBS, Comedy Central, Nickelodeon, and MTV. Redstone expressed optimism about the merger, stating that the Skydance transaction would support Paramount’s continued success in the rapidly evolving media landscape.
The company's TV channels reportedly reach over 4.3 billion subscribers across more than 180 countries. The merger will bring together Paramount, known for classic films like "Chinatown" and "Breakfast at Tiffany's," with Skydance, which has financially supported recent hits such as "Top Gun: Maverick" and "Star Trek Into Darkness."
As part of the agreement, Skydance will invest approximately $8 billion in Paramount, including $2.4 billion for National Amusements, the entity controlling the group. National Amusements holds 10% of Paramount Group's shares but wields nearly 80% of its voting rights. Paramount aims to finalize the deal by next summer.
Founded in 1914, Paramount Global boasts a storied history with films like "The Godfather," "Star Trek," and the "Mission: Impossible" series. However, the entertainment giant has faced challenges in recent years, with its shares dropping over 75% in the past five years.
Skydance is owned by David Ellison, son of Oracle founder Larry Ellison. This announcement follows eight months of negotiations, during which Redstone engaged with several potential partners, including Sony and private equity firm Apollo. The merger news comes as the global entertainment industry undergoes a transformation driven by the rise of video streaming.
In April, Paramount's CEO Bob Bakish departed following disagreements with Redstone over the Skydance deal.
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