Paramount and Skydance Media Announce Game-Changing Merger

Skydance Media and Paramount Global have announced a merger, marking a new chapter for the Hollywood studio. Skydance will acquire National Amusements for $2.4 billion before merging with Paramount. Key roles include David Ellison as chairman and CEO, and Jeff Shell as president. The deal aims to strengthen Paramount for future challenges.

Skydance Media and Paramount Global made waves by announcing their merger late Sunday, creating a new chapter for the storied Hollywood studio. The deal begins with Skydance acquiring National Amusements, which holds the Redstone family's controlling stake in Paramount, for $2.4 billion in cash.

Skydance will then merge with Paramount, offering $4.5 billion in cash or stock to shareholders and an additional $1.5 billion to bolster Paramount's balance sheet. Noteworthy market reactions saw Class B shares drop by 1.8%, while Class A shares rose by 4.8%.

David Ellison, founder of Skydance, will serve as chairman and CEO of the new Paramount, while former NBCUniversal chief Jeff Shell will be president. This merger aims to pivot Paramount towards a tech-focused future, adapting to evolving market demands, as stated by Ellison during a financial analyst call.

(With inputs from agencies.)