Paramount has finalized a merger deal with Skydance, marking the conclusion of the Redstone era.
Shari Redstone has agreed to sell Paramount, the Hollywood group founded by her grandfather in 1936, to independent film studio Skydance in a deal worth $28 billion. This marks the end of her family’s long-standing involvement in the company. The merger follows an intense eight-month process during which Redstone considered various suitors, including Apollo and Sony.
Earlier attempts to finalize a deal with Skydance were thwarted by Redstone, but this agreement now transfers ownership of Paramount’s renowned film studio, responsible for classics like The Godfather and Titanic, to Skydance, led by billionaire David Ellison. Ellison, backed by US private equity groups including RedBird, will invest approximately $8 billion in acquiring Paramount, including a $2.4 billion buyout of National Amusements, the Redstone company controlling Paramount.
The transaction is expected to close in the first half of 2025, aiming to strengthen Paramount in a rapidly evolving industry where content remains pivotal. Redstone, who controls Paramount through National Amusements, expressed confidence that the Skydance deal will ensure Paramount’s continued success amidst industry changes.
Skydance, established by Ellison in 2010 and known for producing blockbusters like Top Gun: Maverick and Star Trek Into Darkness, sees this acquisition as a significant opportunity. Ellison will assume the roles of chief executive and chair of the newly combined entity, expressing gratitude to Redstone for entrusting him with Paramount’s leadership.
Following the death of her father, Sumner Redstone, in 2020, Shari Redstone took charge and initiated strategies such as launching Paramount+ to compete with streaming giants like Netflix, albeit facing substantial losses. The future direction of Paramount+ will be a critical focus under Jeff Shell, the incoming president of the merged company, formerly CEO of NBC.
The agreement includes a provision allowing Paramount’s advisers to entertain rival bids for the company within the next 45 days. Previous potential bidders like Barry Diller, Edgar Bronfman Jr., Apollo, and Sony have shown interest, highlighting the competitive dynamics in the media industry amid technological disruptions.
Gerry Cardinale, founder of RedBird and Ellison’s key partner in the deal, views the Paramount-Skydance combination as pivotal in an era challenging traditional media companies.