The merger is set to finalize by mid-2025, scripting a new chapter for Paramount, one of Hollywood’s oldest surviving studios dating back to its founding in 1912|Rob Corder|CC BY-NC 2.0
Paramount Global and Skydance Media have announced a merger to create “New Paramount” led by David Ellison as chairman and CEO and Jeff Shell as president.
The strategic move is set to finalize by mid-2025, scripting a new chapter for one of Hollywood’s oldest surviving studios, dating back to its founding in 1912.
The complex two-step process announced on Sunday involves Skydance investing $2.4 billion to acquire Paramount’s parent company, National Amusements, and another $4.5 billion in cash and stock for Paramount’s shares. It will additionally invest another $1.5 billion in the studio’s finances.
The second part will see Skydance merge with Paramount in an all-stock transaction that values Skydance at $4.75 billion. The studio shareholders will receive more than 315 million shares valued at $15 apiece.
Pending regulatory approval, the move aims to rejuvenate Paramount and CBS brands and enhance content delivery via platforms like Paramount and Pluto TV, uniting Shari Redstone’s media empire with Larry Ellison’s son’s studio.
The deal comes at a time when Paramount is under pressure and faces competition from streaming giants like Netflix and Disney. The studio’s market value was $8.3 billion as of Sunday evening, down from nearly $60 billion at the height of the COVID-19 pandemic.