Skydance founder David Ellison will lead the combined company as CEO, while Jeff Shell will serve as President.
Paramount Global and Skydance Media have announced a definitive agreement to create “New Paramount,” a next-generation media and technology leader. This formation involves a two-step transaction: first, the acquisition of National Amusements, Inc. (NAI), which holds a controlling share in Paramount, followed by a merger of Skydance and Paramount Global.
Skydance will merge with Paramount in an all-stock transaction, valuing Skydance at $4.75bn. Skydance equity holders will receive 317m Class B Shares valued at $15 per share. The deal gives National Amusements an enterprise value of $2.4bn, which includes $1.75bn in equity.
The merger combines 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 aims to be a top destination for storytellers, emphasising high-quality content, profitability and stability for creators, with a focus on growth areas.
David Ellison will serve as Chairman and CEO, with Jeff Shell as President, leveraging their experience to drive Paramount’s performance and innovation. This merger maintains Paramount’s legacy as a storied Hollywood production company and CBS’s reputation for news and entertainment while preserving American jobs and fostering creativity.
Speaking about the deal, Shari Redstone, Chair of Paramount Global and Chair, President, and CEO of National Amusements, Inc. said: “In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today 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 core of Paramount’s success and our accomplishments 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 fortify Paramount for the future while ensuring that content remains king. Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment. As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”
The collaboration, backed by a 15-year history of successful projects, enhances Paramount’s exposure to digital and next-generation businesses. Skydance’s in-house animation talent, led by John Lasseter, will boost Paramount’s animation capabilities and consumer products. Additionally, Skydance brings advanced interactive and gaming expertise, including franchises like Marvel and Star Wars games, and a partnership with the NFL, complementing CBS resources and creating a premier multi-sports studio.
Overall, the merger positions New Paramount to leverage Skydance’s investments and expertise in emerging media verticals, enhancing Paramount’s value proposition across both direct-to-consumer and linear channels.
David Ellison, Founder and Chief Executive Officer of Skydance, added: “This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy. I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”
Gerry Cardinale, Founder and Managing Partner of RedBird Capital, stated: “The recapitalisation of Paramount and combination with Skydance under David Ellison’s leadership will be an important moment in the entertainment industry at a time when incumbent media companies are increasingly challenged by technological disintermediation. As one of the iconic media brands and libraries in Hollywood, Paramount has the intellectual property foundation to ensure longevity through this evolution – but it will require a new generation of visionary leadership together 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 that the pro forma company under this leadership team will be the pace car for how these incumbent legacy media businesses will need to be run in the future.”
On behalf of the Special Committee, Charles E. Phillips, Jr. commented: “We are pleased to have reached an agreement that we believe delivers to Paramount stockholders both immediate value and future upside opportunity. The Special Committee, with the assistance of independent financial and legal advisors, conducted a thorough review of actionable potential transactions to drive value for our stockholders. In addition to economic value, the Special Committee took into account the certainty of closing and regulatory approvals. Following extensive negotiations with Skydance, we believe this proposed transaction will position Paramount for success in a rapidly evolving industry landscape. Upon closing, it will deliver immediate cash consideration at a premium to both the minority Class A and Class B stockholders, who will also benefit from what we believe to be considerable upside through continued equity participation in New Paramount.”
Phillips continued: “The Special Committee would like to thank our Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins for making significant progress on optimizing company operations in a short period of time, positioning Paramount for a sustainable transformation and a path to profitable growth going forward.”
