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Entertainment NewsParamount $8 Billion Deal Closed

Paramount $8 Billion Deal Closed

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Skydance Secures Control of Paramount Global: David Ellison to Lead

In a groundbreaking deal that will reshape the entertainment industry, Shari Redstone has agreed to sell control of Paramount Global to a consortium led by Skydance, helmed by David Ellison, and Gerry Cardinale’s RedBird Capital. This transaction, pending regulatory approval and potential competing offers, will see Skydance acquire Redstone’s majority stake in National Amusements, thereby gaining control of Paramount Global, which includes Paramount film and TV studios, Paramount+, CBS, and cable channels like Nickelodeon, MTV, and Comedy Central.

A New Leadership Team

Upon the deal’s completion, Paramount is set to acquire Skydance, with Ellison assuming the role of CEO and former NBCUniversal CEO Jeff Shell, currently with RedBird, taking on the role of president to manage day-to-day operations. This transition follows months of fluctuating negotiations, culminating in a revised agreement that gained Redstone’s approval.

Financial Details

The Skydance consortium will invest $2.4 billion to acquire National Amusements for cash and $4.5 billion for the stock/cash merger consideration for publicly traded Class A and Class B shares. An additional $1.5 billion will be infused into Paramount’s balance sheet. Shareholders will have the opportunity to cash out at $23 per Class A share and $15 per Class B share, with Skydance expected to own 70% of the outstanding shares upon completion. The deal values Skydance at $4.75 billion.

Redstone’s Legacy and Vision

Shari Redstone, who has led the company since her father’s death in 2020, expressed her commitment to ensuring Paramount’s enduring success. “My father believed content was king, and that vision has driven Paramount’s success. This transaction with Skydance will fortify Paramount for the future,” she stated.

David Ellison echoed her sentiments, emphasizing the transformative nature of the deal. “This is a defining time for our industry. We are committed to energizing Paramount with new leadership and creative discipline,” he said.

Challenges and Opportunities

Paramount has faced financial challenges, with its streaming business incurring losses and its linear TV business in decline. S&P Global downgraded Paramount’s debt to BB+ in March. Despite these hurdles, Paramount’s leadership, including co-CEOs Brian Robbins, George Cheeks, and Chris McCarthy, have implemented strategies to optimize operations and drive growth.

Looking Forward

The Skydance acquisition aims to revitalize Paramount, leveraging Skydance’s financial resources, operating experience, and technology alongside Paramount’s iconic IP and extensive film and television library. The collaboration between Skydance and Paramount has already proven successful with hits like “Top Gun: Maverick” and “Mission: Impossible – Fallout.”

Final Thoughts

As the deal progresses, Paramount will continue to operate independently, with existing leadership steering the company. The transaction, expected to close in the first half of 2025, signifies a significant shift in the media landscape, positioning Paramount for future success under new leadership.

Memo from Shari Redstone

Shari Redstone’s memo to staff highlighted the company’s achievements and expressed gratitude for their efforts. She emphasized the importance of content and praised the team’s contributions to Paramount’s success.

Memo from Co-CEOs

Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins assured staff that it’s business as usual until the deal closes. They outlined the strategic benefits of the merger and thanked the Redstone family for their support.

This acquisition marks a pivotal moment for Paramount and the entertainment industry, promising a dynamic future for one of Hollywood’s most storied companies.

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Brent Antonio
Reginald has over 20 years of experience in business and technology. Reginald has an undergraduate degree in business and completed post graduate work in business. He has extensive experience in a variety of fields, including: finance, media relations, marketing, strategic planning, public policy, and administration. He has also worked in economic development and community relations. Because of Reginald’s experience, he is passionate about reporting business and technology news.

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