Paramount Global, one of Hollywood’s venerable institutions, is set to merge with independent studio Skydance Media in a landmark agreement worth approximately $28 billion (£21.9bn). Under the complex transaction, Paramount’s controlling stake held by non-executive chair Shari Redstone will transition, marking a significant shift for the Redstone family legacy.
The deal encompasses Paramount’s extensive portfolio, which includes CBS, Comedy Central, Nickelodeon, and MTV, alongside its renowned film library featuring classics like Chinatown and Breakfast at Tiffany’s. Paramount’s recent blockbuster collaborations, including Top Gun: Maverick and Star Trek Into Darkness, further highlight its strategic partnership with Skydance.
Ms Redstone expressed optimism about the merger, emphasizing its potential to sustain Paramount’s success amidst a rapidly evolving media landscape. The transaction also involves Skydance’s substantial investment of $8 billion into Paramount, including the acquisition of National Amusements, which holds significant voting rights within the conglomerate.
The merger, expected to finalize by next summer, signals a pivotal moment for Paramount Global, tracing its origins back over a century to Paramount Pictures Corporation’s founding in 1914. Despite its storied history, Paramount has faced challenges in recent years, reflected in a significant decline in its shares amid transformations within the global entertainment industry.
The agreement follows extensive negotiations and strategic deliberations, culminating in the decision to merge with Skydance after discussions with other potential partners. This development underscores Paramount’s proactive stance amidst the video-streaming revolution reshaping the entertainment landscape worldwide