Paramount-Skydance merger deal approved, ending Redstone family’s reign

After months of turbulent negotiations, Paramount Global and Skydance Media have finalised a merger deal, marking the end of the Redstone family’s long-standing involvement in the media conglomerate. The merger, now pending board approval, resolves one of the most intricate and impactful merger attempts in recent history.

Shari Redstone’s National Amusements, which controls Paramount and CBS, has reached an agreement with David Ellison’s Skydance, bringing an end to a protracted and messy negotiation process. Last year’s failed sale attempt significantly reduced the value of the asset by several hundred million dollars.

The merger will see Skydance investing $8 billion into the newly formed entity and an additional $2.4 billion to acquire National Amusements, which holds nearly 80% of Paramount’s voting shares. This deal values Paramount at $28 billion (£22 billion).

Shari Redstone, daughter of the late media mogul Sumner Redstone, has approved the sale of the family’s controlling stake in Paramount, the studio behind cinematic classics such as “The Godfather,” “Titanic,” and “Breakfast at Tiffany’s.” Paramount’s portfolio also includes CBS, MTV, Nickelodeon, and the UK’s Channel 5.

This agreement concludes more than six months of talks, coming four years after Sumner Redstone’s death. His company, Viacom, had acquired Paramount Pictures three decades ago for $10 billion.

Initially, Shari Redstone halted advanced discussions with Skydance Media last month due to unresolved terms. However, a preliminary deal was reached last week, reviving the merger prospects.

David Ellison, son of Oracle co-founder Larry Ellison, leads Skydance and has assembled a group of investors to support the acquisition of National Amusements and the subsequent merger with Paramount. Skydance, a longstanding production partner of Paramount, has co-produced major hits like “Top Gun: Maverick,” “Mission: Impossible – Dead Reckoning,” and “Star Trek Into Darkness.”

The merger is supported by several private equity firms, including RedBird Capital Partners. RedBird recently withdrew from a joint bid with the UAE government to acquire Telegraph Media Group due to new legislative barriers.

Shari Redstone emphasized the strategic importance of the merger, stating, “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.”

David Ellison expressed gratitude to the Redstone family for the opportunity to lead Paramount into a new era. “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,” he said.