LOS ANGELES (CNS) – Skydance Media announced it has signed an agreement and will begin Monday a two-step transaction to acquire Paramount Global.
Skydance Media, the media company founded in 2010 by movie producer David Ellison, will acquire National Amusements, Inc., controlled by Shari Redstone who owns the controlling share stake in Paramount, which will be followed by a merger of Skydance and Paramount Global.
“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,” Ellison, the son of Oracle Corp. co-founder Larry Ellison, said in a statement.
“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.”
Ellison will become chairman and CEO of New Paramount and Jeff Shell its president. Shell was NBCUniversal’s CEO from 2019-23.
Redstone, the chair of Paramount Global and chair, president, and CEO of National Amusements, Inc. 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.”
The Ellison family and RedBird Capital Partners will invest over $8 billion in New Paramount and to acquire National Amusements, Inc., according to Skydance Media. Paramount Class A stockholders will receive $23 per share in cash/stock election and Class B stockholders will receive $15 per share in cash/stock election.
The Special Committee of Paramount Global’s Board of Directors confirmed Sunday that it unanimously approved the agreement.
About a month ago, Redstone reportedly pulled out of a possible merger deal with Skydance. The Los Angeles Times reported that Skydance had offered more than $2 billion for NAI, with the Redstone family ultimately receiving about $1.7 billion after covering existing debts.
Paramount Global was created in 2019 through the combination of Viacom and CBS. The company includes Paramount Pictures, BET Networks and networks including MTV, Nickelodeon, Comedy Central, CMT, Showtime, Paramount+ and Pluto TV.
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