Paramount, the entertainment powerhouse behind CBS and iconic films like “Top Gun” and “The Godfather,” has announced a merger with Skydance, marking a significant development in the industry.
The combined company is valued at approximately $28 billion.
“With the evolving landscape in our industry, our goal is to strengthen Paramount for the future while emphasizing the paramount importance of content,” said Shari Redstone, Chair of Paramount Global.
Shari Redstone, whose National Amusements controls over three-quarters of Paramount’s Class A voting shares through her late father Sumner Redstone’s estate, has been pivotal in retaining control of the company.
Based in Santa Monica, California, Skydance has played a crucial role in producing several Paramount hits, including various Tom Cruise films such as “Top Gun: Maverick” and entries in the “Mission Impossible” series. Founded by David Ellison in 2010, Skydance quickly established a production partnership with Paramount the same year.
David Ellison will serve as Chairman and CEO of the newly formed entity, referred to as New Paramount, pending regulatory approval.
The merger comes amid a turbulent period for Paramount, which recently outlined a restructuring plan involving significant cost reductions during its annual shareholder meeting in June. Earlier this year, the company also underwent leadership changes.
Facing challenges in a shifting media landscape, particularly with declining traditional cable business, Paramount launched Paramount+ in 2021 to tap into the growing streaming market. However, financial losses and debts have persisted.
Sumner Redstone leveraged National Amusements, his family’s theater chain, to build a vast media empire encompassing CBS and Viacom, which have undergone multiple mergers and separations over the years. In 2019, ViacomCBS reunited after their split in 2006, rebranding as Paramount Global in 2022.
Under Sumner Redstone’s leadership, Viacom grew into a major media player, housing popular TV channels like MTV and Comedy Central alongside Paramount Pictures.
While Skydance wasn’t the only bidder for Paramount recently — Apollo Global Management and Sony Pictures also made competing offers — the merger with Skydance signals a new chapter for Paramount in navigating the complexities of today’s media landscape.
