Paramount is expected to combine with Skydance, effectively ending the Redstone family’s long-standing Hollywood rule and launching David Ellison, son of Oracle’s Larry Ellison, a new billionaire. This combination values the combined company at roughly $28 billion and gives Paramount, a heritage studio struggling with the changing entertainment scene significant finances.
Over three-quarters of Paramount’s Class A voting shares were held by Shari Redstone’s National Amusements for decades via her late father, Sumner Redstone. Redstone agreed to the same conditions of a merger suggested just a few weeks earlier despite initial resistance. Redstone said, chair of important Global, “With industry changes, our focus is to strengthen Paramount, ensuring content remains paramount.”
It’s Official: Paramount and Skydance Are Merginghttps://t.co/ox80eyM0NG
— Courtney & Ashleigh (@cainlatwitch) July 8, 2024
Founded in 2010 by Ellison, Skydance—a key partner in Paramount’s recent triumphs like “Top Gun: Maverick—quickly developed a production relationship with Paramount. After acquisition closing, estimated by September 2025 depending on regulatory clearances, Ellison will guide the combined company as chairman and CEO.
The freshly appointed New Paramount wants to change how it runs if it is to remain competitive. This covers upgrading the Paramount+ streaming platform, switching to cloud-based production, and using generative artificial intelligence to increase effectiveness. Investing $8 billion in this innovative project is a consortium headed by the Ellison family and RedBird Capital.
The complicated transaction will see Skydance first buy National Amusements, then merge with Paramount, valuing Skydance at $4.75 billion. https://t.co/DwiAeGTHLw
— WKOW 27 News (@WKOW) July 8, 2024
Ellison underlined in a recent conference call the change towards a ‘tech hybrid’ model necessary for survival in the new media environment. RedBird Sports and Media chairman Jeff Shell said further reorganization seeks to quickly generate $2 billion in cost reductions and synergies.
Beginning as a movie distributor in 1914, Paramount’s legacy spans decades and has shaped the business with masterpieces like “The Godfather” and “Titanic.” Notwithstanding recent difficulties, including a turbulent leadership under previous CEO Bob Bakish and the disclosure of a major restructuring plan exposed in early June, Paramount continues to be a major competitor.
Paramount agrees to sweetened Skydance merger dealhttps://t.co/gLsHxJLpt5
— ContentBuffer (@contentbuffer) July 8, 2024
Paramount’s release calendar is still small this year, with some noteworthy forthcoming projects like the “Gladiator” sequel by Ridley Scott. The National Association of Theatre Owners voiced hope but also caution, hoping the combination does not lower the quantity of theatrical releases, therefore affecting the various segments of the business.
This combination takes place during a difficult time for Paramount, which has the chance to redefine its future and impact on Hollywood and beyond.
Key Points:
i. Paramount is set to join Skydance for approximately $28 billion, ending the Redstone family’s control and bringing in David Ellison, son of Oracle’s Larry Ellison.
ii. Shari Redstone consented to the merger terms through her late father Sumner Redstone’s National Amusements, emphasizing Paramount’s content focus.
iii. The acquisition will make David Ellison chairman and CEO of Skydance, which contributed to Paramount’s recent successes including “Top Gun: Maverick,” after closing in September 2025 pending regulatory approval.
iv. An $8 billion investment from the Ellison family and RedBird Capital will help Paramount improve its Paramount+ streaming service, implement cloud-based production methods, and use generative artificial intelligence to boost productivity.
v. Parment is a major player in the market despite recent leadership changes and a major reorganization strategy, with anticipation that the merger won’t reduce theater releases and effect other business segments.
Al Santana – Reprinted with permission of Whatfinger News
