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Paramount Global and Skydance Media have agreed to combine their media companies, according to a joint statement on Sunday.
The proposed merger comes after reports earlier this month of fresh talks between the two companies emerged, and after months of interest from a range of potential bidders.
Paramount Global and David Ellison’s Skydance Media said the merger would happen in two stages.
The Paramount logo is displayed at Columbia Square on Sunset Boulevard in Hollywood, California on March 9, 2023. (Photo: Patrick T. Fallon/AFP via Getty Images/Getty Images)
Skydance Investor Group plans to buy Shari Redstone’s Paramount-owned National Amusements Inc. for $2.4 billion, the companies said.
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The proposed transaction also includes a group led by the Ellison family and RedBird Capital Partners investing up to $6 billion in cash or stock in shareholders other than NAI and “additional capital to repay debt and recapitalize the balance sheet” of the so-called “New Paramount,” according to a statement from Paramount and Skydance.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Paraa | Paramount Global | 21.16 | +0.69 | +3.37% |
The two companies estimated the new Paramount’s enterprise value at approximately $28 billion.
“We are hopeful that this transaction with Skydance will position Paramount for continued success in this rapidly changing environment,” Redstone said in a statement. “As Paramount’s longtime production partner, Skydance knows Paramount well and has a clear strategic vision and the resources to lead Paramount into its next phase of growth.”
The Skydance Media logo will appear on your smartphone and PC screen. (Pablo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
The companies said they hoped through the merger to “reshape the company’s operating model, transform its technology platform, streamline its organization and accelerate other initiatives already underway.”
“We are committed to revitalizing the Paramount business and strengthening it with modern technology, new leadership and creative discipline that aims to enrich generations to come,” Ellison said.
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He will lead the “new Paramount” as CEO of the combined company, which will also include Redbird’s Jeff Shell as president, according to Paramount and Skydance.
The proposed merger has already been approved by special committees and the boards of directors of National Amusements and Paramount.
The companies said they aim to close the transaction in the first half of 2025, assuming necessary regulatory approvals are received and Paramount doesn’t find another deal during a 45-day “go-shop” period.
The Paramount Pictures logo is displayed in front of Paramount Studios in Los Angeles with the Hollywood sign visible behind it on January 31, 2024. (Photo by Mario Tama/Getty Images/Getty Images)
“There can be no assurance that this process will result in a superior proposal, and Paramount does not intend to disclose developments with respect to the go-shop process unless it determines such disclosure is appropriate or necessary,” the announcement said of the “go-shop” period.
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The Redstone family has controlled Paramount through National Amusements for nearly 30 years.
Paramount’s Class B shares fell about 5% on Monday following news of the proposed merger.
