Paramount Global and Skydance Media have revealed plans for a significant merger that will create “New Paramount,” positioning the combined entity as a leading media and technology powerhouse.
The merger involves a two-step transaction: first, the acquisition of National Amusements, Inc. (NAI), which holds a controlling stake in Paramount, followed by a merger of Skydance and Paramount Global.
Skydance will merge with Paramount in an all-stock transaction valued at $4.75 billion. As part of the deal, Skydance equity holders will receive 317 million Class B Shares valued at $15 per share. This transaction also includes an enterprise value of $2.4 billion for National Amusements, with $1.75 billion in equity.
The merger aims to leverage Skydance Investor Group’s financial resources and technological expertise with Paramount’s extensive film and TV library, iconic intellectual property, and broad reach across linear and streaming platforms. New Paramount’s priority is to become a top destination for storytellers, focusing on high-quality content, profitability, and stability for creators, with a keen eye on growth opportunities.
David Ellison is set to serve as Chairman and CEO, with Jeff Shell taking on the role of President. Their combined experience will be instrumental in driving Paramount’s performance and innovation. The merger seeks to uphold Paramount’s legacy as a revered Hollywood production company and CBS’s reputation for news and entertainment while also emphasising the preservation of American jobs and fostering creativity.
Shari Redstone, Chair of Paramount Global and Chair, President, and CEO of National Amusements, Inc., expressed confidence in Paramount’s future, stating, “Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king. We hope the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment.”
The collaboration, backed by a successful 15-year history, aims to enhance Paramount’s exposure to digital and next-generation businesses. Paramount will gain from Skydance’s in-house animation talent, advanced interactive and gaming expertise, and a partnership with the NFL, bolstering its position across direct-to-consumer and linear channels.
David Ellison, Founder and Chief Executive Officer of Skydance, expressed his commitment to energising the business and enriching Paramount with contemporary technology and new leadership, aiming to secure the company’s longevity in the entertainment economy.
Gerry Cardinale, founder and managing partner of RedBird Capital, emphasised the importance of the merger in navigating the challenges incumbent media companies face and the need for visionary leadership to drive future success.
Charles E. Phillips, Jr., speaking on behalf of the Special Committee, expressed satisfaction with the agreement, which is expected to deliver value to Paramount stockholders in the short term and the future.
