The Ellison family has agreed to acquire the business from Shari Redstone, heralding a new chapter for the fabled Hollywood production studio and its various businesses, including CBS, Paramount+ and Network Ten.
Skydance, which is owned by Tech scion David Ellison, will merge with Paramount Global after agreeing to buy the Redstone family’s controlling 77 per cent stake in the business.
The merger would combine one of Hollywood’s iconic production studios and global media empires with its commercial partner of 15 years. Paramount and Skydance have partnered on recent hit films including Top Gun: Maverick and Mission Impossible Dead Reckoning.
Once the acquisition of Paramount’s parent company, National Amusements, has completed, a new management team will be assembled to lead ‘New Paramount’. This will include Ellison as chair and CEO, and RedBird Capital Partners chair and veteran media executive Jeff Shell as president.
The Ellison family and RedBird Capital Partners plan to invest more than $8 billion to acquire National Amusements, including an injection of $1.5 billion to shore up Paramount Global.
Paramount Global has shed nearly $17 billion ($A25 billion) in value since late 2019, as its traditional television business has eroded faster than its Paramount+ streaming service could turn a profit.
The plan is to create a “premier, creative-first destination for storytellers, dedicated to top-quality content and will be positioned to improve profitability, foster stability and independence for creators, and enable more investment in growth areas,” a statement announcing the deal said.
It’s unclear what new ownership means for Paramount’s Australian businesses.
A protracted saga
The deal draws to a close a protracted saga by Paramount’s non-executive chair Shari Redstone to sell the family business that was built by her late father and media mogul, Sumner.
Redstone had previously been pushing to sell National Amusements to Skydance for months only to suddenly change her mind in June. Skydance went back to the negotiating table with an improved offer to seal the deal.
Redstone had also courted a number of other suitors throughout the sales process, including Seagram heir Edgar Bronfman and Hollywood producer Steven Paul.
The Slydance deal also removes some the ownership uncertainty that has swirled around the media empire and caused friction within its executive suites. In April, former CEO Bob Bakish – who was said to oppose a Skydance merger – was ousted after reportedly clashing with Redstone over the Skydance deal.
He was replaced by three co-CEOs – George Cheeks, Chris McCarthy and Brian Robbins – who proposed making deep cuts of up to $500 million and potential selling off certain assets.
It is not yet clear if Skydance Media ownership would scupper these plans or what new ownership means for Paramount’s Australian subsidiaries, which declined to comment on the announcement.
“As a longtime production partner to Paramount, Skydance is well aware of what we have accomplished over the years and it is for that reason that they have pursued a combination with Paramount. They have a clear strategic vision for the future and the resources to build on Paramount Global’s competitive advantages to drive the Company’s success,” Shari Redstone said in a staff memo.
“The agreement we entered into today is subject to closing conditions, and we expect the deal to be completed in the first half of 2025. Until then, George, Chris, and Brian will continue to lead the Company, and they will be sharing more with you shortly.”
