Paramount Global and Skydance Media Set to Merge in Landmark Deal

Paramount Global's board has approved a merger with Skydance Media, signaling a major shift for the historic Hollywood studio. The deal highlights the end of Redstone family’s era while elevating David Ellison as a new industry influencer, amidst an entertainment landscape transformed by streaming services.

Paramount Global's board of directors approved a merger with Skydance Media, potentially finalizing the agreement soon. This merger signals a new chapter for the historic Hollywood studio.

The deal ends an era for the Redstone family, whose late patriarch, Sumner Redstone, built a media empire from drive-in theaters. Paramount will now combine with Skydance, its financial partner on major films like 'Top Gun: Maverick' and 'Mission: Impossible-Dead Reckoning'.

David Ellison, founder of Skydance, will become a significant power broker in Hollywood. However, he inherits a company facing the challenges of a rapidly changing entertainment industry. Paramount has struggled, losing significant value as its traditional television business has declined faster than its streaming service could compensate.

Internal tensions have also marked this transition. Former CEO Bob Bakish was ousted after clashing with controlling shareholder Shari Redstone over the Skydance deal. He was replaced by a group of executives proposing significant cost-cutting measures, which may now be uncertain.

Ellison is expected to be joined by veteran media executive Jeff Shell once the deal closes. The merger is the result of months of negotiations, which nearly derailed but resumed with Skydance improving their offer.

Skydance has proposed a substantial financial injection into Paramount, including buying significant shares, enhancing legal protections, and providing a $1.5 billion boost to Paramount's finances. The deal allows 45 days for Paramount to consider better offers, indicating potential further developments.

(With inputs from agencies.)