Paramount Global has agreed to merge with Skydance Media in a deal that values the joint enterprise, temporarily dubbed “New Paramount,” at approximately $28 billion. As part of the two-step agreement, Paramount Chair Shari Redstone will sell National Amusements for $2.4 billion, while Skydance will merge with Paramount, investing $8 billion to purchase Paramount’s shares and pay off some of the company’s balance sheet.
Skydance founder David Ellison will become the new chairman and chief executive of Paramount, with former NBCUniversal chief executive Jeff Shell assigned as its new president. Ellison replaces former Paramount CEO Bob Bakish, who departed the company in April after reportedly clashing with Redstone over the Skydance deal.
Redstone now has a 45-day “go-shop” period under the merger agreement to accept a better deal. However, it seems unlikely that the deal will be altered, with Redstone’s internal announcement sent to employees suggesting that the deal is already a done deal. The merger is expected to be completed in the first half of 2025.