Paramount merger with Skydance! WHOA!! July 14th 2024

Paramount Global and Skydance Media have recently agreed to a significant merger, creating a new entity known as "New Paramount." This merger marks the end of the Redstone family's long control over Paramount, with Shari Redstone's National Amusements agreeing to the deal despite previous hesitations. The merger will see David Ellison, the founder of Skydance, take on the role of Chairman and CEO of New Paramount. The deal is valued at approximately $28 billion and includes an $8 billion investment from a consortium led by the Ellison family and RedBird Capital. The transaction, pending regulatory approval, is expected to close in September 2025​ (Paramount)​​ (Paramount)​.

The merger aims to transform Paramount into a more agile and tech-focused media company. David Ellison has emphasized a "creative first" approach while also highlighting the importance of transitioning to a "tech hybrid" model to remain competitive in the evolving media landscape. Plans include rebuilding the Paramount+ streaming service, expanding direct-to-consumer business, and leveraging cloud-based production and generative AI for efficiency. Additionally, executives have identified approximately $2 billion in potential cost efficiencies and synergies, which they plan to implement rapidly. This strategic move is intended to stabilize Paramount's operations, protect its creative independence, and position it for future growth