Paramount Global, one of Hollywood’s oldest companies, has agreed to merge with the independent film studio Skydance Media. The merger marks a significant shift in the entertainment industry, valued at approximately $28 billion (£21.9 billion).
As part of the deal, Shari Redstone, Paramount’s non-executive chair, will sell her family’s controlling stake in the company. This complex transaction concludes an era for the Redstone family, whose late patriarch, Sumner Redstone, built a vast media empire from a chain of drive-in cinemas. In addition to Paramount, the media group encompasses television networks such as CBS, Comedy Central, Nickelodeon, and MTV.
Shari Redstone expressed optimism about the merger, stating, “Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment.” Paramount’s TV channels boast a global reach of over 4.3 billion subscribers across more than 180 countries.
The merger will combine Paramount, known for classic films like “Chinatown” and “Breakfast at Tiffany’s,” with Skydance, its financial partner on recent major releases such as “Top Gun: Maverick” and “Star Trek Into Darkness.” Under the agreement, Skydance will invest around $8 billion in Paramount, including $2.4 billion for National Amusements, the firm that controls the group behind names such as CBS and MTV.
Although National Amusements owns just 10% of Paramount Group’s shares, it accounts for near.
