Skydance Media Takes Over Paramount Global
On Thursday, Skydance Media officially took control of Paramount Global, wrapping up a lengthy and tumultuous merger process valued at $8 billion, which had been threatened by political scrutiny and shareholder worries.
A new entity, Skydance Paramount Corp, merges Skydance’s production and technical prowess with Paramount’s established brands that are currently facing challenges, such as CBS, MTV, the Paramount+ streaming service, and an extensive film and television library.
David Ellison, the leader at Skydance, will step in as CEO and chairman of PSKY, outlining several initiatives as he declared this to be “day one of the new Paramount.”
“We’re beginning an exciting new chapter for this legendary company,” stated Ellison, who is the son of billionaire Oracle co-founder Larry Ellison.
He added that the goal is to transform Paramount into a technologically advanced company that blends Hollywood creativity with Silicon Valley’s innovative spirit.
The company will reorganize into three main divisions: studio, consumer, and television media.
This merger received a nod from the FCC on July 24, shortly after Paramount agreed to a $16 million settlement with former President Trump over a lawsuit related to a “60 Minutes” interview with Kamala Harris.
The FCC chair approved the deal only after Skydance promised to appoint an Ombudsman to ensure CBS News maintains political neutrality.
In a notable move, Paramount also decided to cancel “Late Show with Stephen Colbert” soon after the merger’s approval, citing financial difficulties, with reports indicating the show lost around $50 million.
During an event at Paramount’s Times Square headquarters, Ellison spoke highly of CBS News, referring to it as “home to one of America’s most esteemed legacies in broadcast journalism.”
He emphasized the significance of “60 Minutes,” highlighting its long-standing tradition of impactful reporting by seasoned journalists who prioritize accuracy and public trust.
This merger solidifies media heir Shari Redstone’s connection with a company founded by her legendary father, Sumner Redstone.
As part of the agreement, Larry Ellison, along with Skydance and Jerry Cardinal’s Redbird Capital, acquired a 77% stake in Paramount Global through a venture involving the Redstone family.
Redstone is set to exit the board of directors after receiving $180 million in retirement packages alongside stock benefits, while her 20% interest in National Entertainment is valued at around $350 million.
Overall, Skydance is investing over $2.4 billion for the Redstone family’s shares and more than $4.5 billion for other Paramount shareholders.
Additionally, Jeff Shell, former head of NBCUniversal, is set to join Ellison as the company’s president amidst some controversy following his ousting from Comcast due to misconduct allegations.
George Cheek, the current co-CEO of Paramount, who played a role in settling the lawsuit with Trump, will continue with the new company, managing the television media division.
On Thursday, Ellison noted the new company’s focus on enhancing its streaming platforms, with Paramount+ and Pluto TV expected to operate on a shared technological foundation beginning in 2026.
However, he was somewhat unclear about plans for Paramount’s cable channels, including MTV and VH1.
He further mentioned, “In the television media realm, we’re facing the challenge of reinventing our brand portfolio for a nonlinear world. We’re aiming to invest wisely based on upcoming business prospects to boost cash flow and reinvest in growth opportunities.”
