Paramount Global, a famous Hollywood studio, has agreed to merge with independent film studio Skydance Media in a deal valued at $28 billion. Paramount was built by the late Sumner Redstone, but this merger signals the end of the Redstone family’s control over it.
Shari Redstone, Paramount’s non-executive chair, will sell her family’s controlling stake as part of the transaction. The deal includes an $8 billion investment from Skydance, with $2.4 billion allocated for National Amusements, which controls Paramount. Despite owning just 10% of Paramount’s shares, National Amusements holds nearly 80% of its voting rights.
Shari Redstone expressed optimism about the merger, stating it would ensure Paramount’s continued success amid the rapidly evolving entertainment landscape. Paramount, known for classic films like “Titanic”, “Chinatown” and “Breakfast at Tiffany’s,” and TV networks including CBS and MTV, will combine with Skydance, known for recent hits like “Top Gun: Maverick” and “Star Trek Into Darkness.”
The merger followed eight months of negotiations and the departure of Paramount’s CEO Bob Bakish, who clashed with Redstone over the deal. In February 2024, Paramount laid off about 800 employees to cut costs. Its recent merger with Skydance is expected to close by next summer.
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