Paramount completes $8 billion merger with Skydance Media in bid to ‘energise’ the streamer

Paramount Global will complete an $8bn merger with Skydance Media, increasing the organisation's value to around $28bn and ending the Redstone family’s involvement with the company Michael Redstone founded in 1936.

The merger comes after months of prolonged talks of a sale and several buyout proposals from Skydance. Expected to close in early 2025, the deal will see Skydance’s buying consortium, made-up of billionaire founder David Ellison and multiple private equity groups including RedBird Capital Partners, pay $2.4bn in cash to acquire National Amusements, which owns the controlling stake in Paramount.

Ellison will take on the role of Chairman and CEO for the new company, with Jeff Shell, former CEO of NBCUniversal, to join as President.

Skydance’s purchase may represent a new lease on life for Paramount, which lost almost $17bn in valuation between 2019 and 2022, per Reuters.

Shari Redstone, Chair of Paramount Global and Chair, President, and CEO of National Amusements, Inc. said: “In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global. He had a vision that "content was king" and was always committed to delivering great content for all audiences around the world.

“That vision has remained at the core of Paramount’s success and our accomplishments are a direct result of the incredibly talented, creative, and dedicated individuals who work at the company. 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.”

Notably, Paramount has been battling to gain a foothold in the streaming sector, with its offering Paramount+ attempting to rival the likes of Netflix, Amazon Prime and Disney+.

Although the platform has a reported 71 million users, it lost $490m in the final quarter of 2023 and is not expected to become profitable in the US until 2025.

David Ellison, Founder and Chief Executive Officer of Skydance, said: “This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy.

“I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energising the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”