#ParamountSkydanceMerger #HollywoodBusiness #DavidEllison
Paramount and Skydance Agree to Merge, Ending Redstone Era
In a significant development for Hollywood, Skydance Media and Paramount Global have reached an agreement to merge, marking the end of the Redstone family's controlling interest in Paramount. This complex transaction will elevate David Ellison, the 41-year-old founder of Skydance, as a key player in the industry.
The merger unites Paramount, known for iconic movies like "Chinatown," "The Godfather," and "Breakfast at Tiffany's," with its financial collaborator on recent blockbusters like "Top Gun: Maverick," "Mission: Impossible – Reckoning," and "Star Trek Into Darkness." Paramount has experienced a significant decline in value since late 2019, primarily due to the decline of its traditional television sector outpacing the growth of its Paramount+ streaming platform.
Tensions within the company's leadership have been palpable, leading to the ousting of CEO Bob Bakish in April following disagreements with controlling shareholder Shari Redstone over the Skydance agreement. His position was filled by a trio of executives forming an "office of C.E.O." proposing substantial reductions, asset sales, and potential partnerships for Paramount+.
Upon the completion of the merger, Jeff Shell, a seasoned media executive and former NBCUniversal CEO, is expected to join Ellison at Paramount. The deal between Paramount and Skydance concluded after months of negotiations that initially hit a roadblock when talks were abruptly halted by Redstone. Despite initial setbacks, discussions between Ellison and Redstone resumed and progressed positively. Skydance sweetened the deal for the Redstone family, increasing the payout for the sale of National Amusements and enhancing legal safeguards against potential shareholder litigations, ultimately paving the way for a revised agreement.
The merger also allows Paramount a 45-day window to consider superior offers, injecting an element of uncertainty into an already tumultuous deal-making process.
Original Article: https://www.cnbc.com/2024/07/08/paramount-skydance-merger.html
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