Skydance Media and Paramount Global Merge to Fortify Hollywood Legacy

Skydance Media and Paramount Global announced a merger to bolster Paramount's future amid industry changes. David Ellison will lead the new entity. The merger promises technological upgrades and creative innovation, countering past financial and executive challenges. Paramount's traditional TV losses and Paramount+ expansion are key focus areas.

Skydance Media and Paramount Global have announced their merger in a landmark deal intended to fortify one of Hollywood's oldest studios. The two-step process involves Skydance acquiring National Amusements, the Redstone family's controlling stake in Paramount, for $2.4 billion in cash.

Subsequently, Skydance will merge with Paramount, offering $4.5 billion in cash or stock to shareholders and injecting $1.5 billion into Paramount's balance sheet. The merger signifies an end of an era for Shari Redstone, whose father, Sumner Redstone, built a media empire from a chain of drive-in movie theaters.

David Ellison will become chairman and CEO, with Jeff Shell as the new president. The merger aims to address Paramount's challenges, including its traditional TV business erosion and the streaming evolution led by Paramount+. Ellison promises cutting-edge technology and creative discipline for enduring legacy.

(With inputs from agencies.)