Jul 8, 2024

Paramount and Skydance to Merge

Paramount Global to be acquired by Skydance Media in a complex transaction valued in excess of $8 billion, in which Skydance will first acquire Paramount's controlling company, Shari Redstone's National Amusements, and then merge Skydance and Paramount in a two-step transaction.

The deal will have a major impact on the animation industry, including a new role for John Lasseter, head of animation at Skydance.

A breakdown of the deal follows:

Key players in the deal include.

Shari Redstone, Chairman of Paramount Global and Chairman, President and CEO of National Amusements, stated: [In 1987, my father, Sumner Redstone, acquired Viacom, and Paramount Global today and began to assemble and grow the business known today as Paramount Global. He had a vision that “Content is King” and was always committed to providing great content to all viewers around the world. This vision remains at the core of Paramount's success, and our accomplishments are a direct result of the incredibly talented, creative, and dedicated employees who work at Paramount. Given the changes in the industry, we want to strengthen Paramount for the future while ensuring that content remains king. We hope that our deal with Skydance will enable Paramount's continued success in this rapidly changing environment. As Paramount's longtime production partner, Skydance knows Paramount well and has a clear strategic vision and the resources to take Paramount to the next stage of growth. We believe in Paramount and we will continue to do so.”

David Ellison, founder and CEO of Skydance, said:

“For our industry and the storytellers, content creators and financiers invested in Paramount's legacy and longevity in the entertainment economy, this is a critical shift. This is a critical time of change for all of us. I am deeply grateful to Shari Redstone and her family for agreeing to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and strengthening Paramount with modern technology, new leadership, and creative disciplines aimed at enriching the next generation.”

Jerry Cardinale, founder and managing partner of Redbird Capital, stated: [Paramount's recapitalization and integration with Skydance under the leadership of David Ellison will enable the existing media companies to become more and more technologically This will be a pivotal moment in the entertainment industry at a time when disintermediation is increasingly challenging. Paramount, one of Hollywood's leading media brands and libraries, has a foundation of intellectual property that will ensure longevity throughout this evolution, but to navigate this next phase will require a new generation of visionary leadership, along with experienced operational management. redBird is heavily funded in partnership with the Ellison family. It is our belief that a pro forma company under this leadership team will be the pacesetter for how these existing legacy media businesses need to operate in the future.