David Ellison’s Skydance is to take control of Paramount after finally agreeing terms with Shari Redstone, owner and President of National Amusements which owns a majority stake in the studio.
The $28bn deal follows more than 6 months of speculation as talks between Skydance, Paramount and its main shareholder warmed and cooled before last month culminating in an abrupt ending of talks just days after reports that a deal had been reached.
The two companies already have a strong history of working together, having co-funded and co-produced multiple films since 2009, including the latest chapters in the Mission Impossible, Transformers and Star Trek sagas.
In addition to the film studio, Paramount owns the Paramount+ streaming service plus substantial US and international broadcasting assets, including Channel 5 here in the UK.
The deal, which is subject to regulatory approvals and is expected to complete next, will see the creation of ‘New Paramount’ – billed as a next-generation media and technology leader – through a two-step transaction comprising of the acquisition of National Amusements followed by a merger of Skydance and Paramount Global.
Redstone said: “In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global.
“He had a vision that “content was king” and was always committed to delivering great content for all audiences around the world. That vision has remained at the core of Paramount’s success and our accomplishments are a direct result of the incredibly talented, creative, and dedicated individuals who work at the company.
“Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king. Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment.
“As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”
Ellison commented: “This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy.
“I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”