Skydance Media and Paramount Global Merge in Landmark Deal

Skydance Media and Paramount Global have agreed to merge, marking a significant shift in Hollywood's business landscape. The deal involves the sale of the controlling stake held by Shari Redstone's family and elevates Skydance's David Ellison as a new power broker in the media industry.

Skydance Media and Paramount Global announced a merger late Sunday evening, signifying a pivotal moment for one of Hollywood's oldest studios. Shari Redstone, Paramount's non-executive chair, will sell the family's controlling stake in a complex transaction leading up to the merger.

This substantial deal concludes an era for the Redstone family, whose patriarch Sumner Redstone, built a media empire from drive-in theaters, including Paramount Pictures, CBS, Comedy Central, Nickelodeon, and MTV. The merger will combine Paramount, known for classics like 'Chinatown' and 'The Godfather,' with Skydance, its financial partner in recent hits such as 'Top Gun: Maverick'.

David Ellison, Skydance's founder, will become Hollywood's latest power broker, inheriting a company facing significant challenges amid the streaming revolution. Paramount has lost nearly $17 billion in value since 2019 due to the rapid decline of traditional TV faster than its streaming service Paramount+ could compensate.

(With inputs from agencies.)