Paramount Global and Skydance Media Merge to Create $28 Billion Entity

Paramount Global and Skydance Media Merge to Create $28 Billion Entity

Sofia Rodriguez
2 min read

Paramount Global to Merge with Skydance Media, Creating "New Paramount" Valued at $28 Billion

Paramount Global is on track to merge with Skydance Media, shaping a new entity temporarily titled "New Paramount" with an estimated value of $28 billion. The consolidation involves a two-step process wherein Shari Redstone, Paramount's chair, will sell National Amusements, her family's governing stake, for $2.4 billion. Following this, Skydance will invest $8 billion to acquire Paramount's shares and aid in managing its $14.6 billion debt, largely attributed to streaming losses and a declining TV business.

Emphasizing the significance of content for Paramount's future, Shari Redstone highlights the need to reinforce the company. With this merger, Skydance founder David Ellison, son of Oracle's Larry Ellison, will assume the role of chairman and CEO, while Jeff Shell from NBCUniversal will take over as the new president. This alliance comes after previous unsuccessful negotiations and includes increased payouts for the Redstone family alongside enhanced legal safeguards. While Redstone retains a 45-day window to entertain improved offers, internal communications imply a likelihood that the deal will proceed, with the anticipated closure in the first half of 2025.

Key Takeaways

  • Paramount Global merges with Skydance Media, forming "New Paramount" valued at $28 billion.
  • Shari Redstone sells National Amusements for $2.4 billion, paving the way for the merger.
  • Skydance invests $8 billion to buy Paramount shares and reduce the company's debt.
  • David Ellison becomes Paramount's CEO, with Jeff Shell as president.
  • Redstone has a 45-day "go-shop" period, but internal communications suggest the deal is final.


The merger of Paramount Global and Skydance Media into "New Paramount" will have significant financial implications for stakeholders like Shari Redstone and Larry Ellison's families. It addresses Paramount's debt and streaming losses caused by industry shifts and competitive pressures. In the short term, the sale of National Amusements by Redstone and Skydance's investment provide stability, while the long-term leadership transition under David Ellison and Jeff Shell aims to revitalize content strategy and market positioning. This consolidation could reshape the entertainment landscape, influencing competitors and investors in the media and tech sectors.

Did You Know?

  • National Amusements:
    • National Amusements is a privately held American company that controls the majority voting shares of both CBS Corporation and Viacom. Shari Redstone, primarily controlling it, is selling her family's stake in National Amusements to enable the merger between Paramount Global and Skydance Media.
  • "Go-shop" Period:
    • A "go-shop" period allows a target company to proactively seek other competitive offers from third parties following an initial agreement. In this case, Shari Redstone has a 45-day window to consider better offers for National Amusements, even though the current deal is likely to proceed according to internal communications.
  • Skydance Media:
    • Skydance Media, founded by David Ellison, operates in various sectors including film, television, and animation. The company’s $8 billion investment in the Paramount Global merger is a substantial financial commitment aimed at obtaining Paramount's shares and helping to pay off its substantial debt.

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