Paramount Global, one of Hollywood’s oldest companies, has agreed to merge with independent film studio Skydance Media. The deal, worth approximately $28 billion, marks the end of an era for the Redstone family, who have controlled Paramount for decades.
Under the agreement, Skydance will invest $8 billion in Paramount, including a $2.4 billion payment for National Amusements, which controls the group. Shari Redstone, Paramount’s non-executive chair, will sell her family’s controlling stake in the company, resulting in a new firm with a global reach of over 4.3 billion subscribers across 180 countries.
“Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment,” Ms. Redstone said in a statement.
The merger combines Paramount, known for classic films like Chinatown and Breakfast at Tiffany’s, with its financial partner on recent releases like Top Gun: Maverick and Star Trek Into Darkness. The deal is expected to close by summer 2024.
Paramount Global, founded in 1914, has struggled in recent years, with its shares falling over 75% in the last five years. Skydance Media, owned by David Ellison, has been a key partner for Paramount in recent years.
The deal comes as the entertainment industry undergoes a significant transformation due to the video-streaming revolution.
