Entertainment powerhouse Paramount, known for producing hit movies like “Top Gun” and “The Godfather,” has announced a merger agreement with Skydance. This collaboration values the newly formed entity at approximately $28 billion. Paramount Global’s chair, Shari Redstone, expressed the importance of strengthening Paramount in the ever-evolving industry landscape while emphasizing the significance of content.
Skydance, headquartered in Santa Monica, California, has been a significant contributor to Paramount’s success. The company was founded in 2010 by David Ellison, son of Oracle’s founder, Larry Ellison, and has co-produced major Paramount hits, including films starring Tom Cruise such as “Top Gun: Maverick” and entries in the “Mission Impossible” franchise.
David Ellison is set to serve as the chairman and CEO of the rebranded entity, New Paramount, pending regulatory approvals. This merger occurs during a challenging period for Paramount, marked by recent restructuring efforts and changes in leadership.
Despite launching Paramount+ in 2021 to tap into the expanding streaming market, Paramount has faced financial struggles, with mounting losses and debts over time. Paramount Global, previously known as ViacomCBS, traces its roots back to Sumner Redstone, who utilized National Amusements, the family’s theater chain, to build a vast media empire that included CBS and Viacom.
Viacom, under Redstone’s leadership, became a major player in the media industry, housing popular channels like MTV and Comedy Central, along with Paramount Pictures. Skydance’s merger with Paramount comes after competing bids from Apollo Global Management and Sony Pictures, and discussions with Warner Bros. Discovery about a potential collaboration were halted earlier this year.
