Skydance Media Takes Helm at Paramount in Groundbreaking $8 Billion Deal
Skydance Media has finalized a significant deal with Paramount Global, ushering in a new era for the companies. David Ellison, Skydance’s founder, will become chairman and CEO of the expanded Paramount, while former NBCUniversal CEO Jeff Shell will serve as president.
Shari Redstone emphasized her father Sumner Redstone’s vision that “content was king” when he acquired Viacom in 1987. “We want to fortify Paramount for the future while ensuring that content remains king,” she stated. Redstone expressed confidence in Skydance’s strategic vision and resources to drive Paramount’s growth in a changing industry. The $8 billion transaction involves substantial investments to rejuvenate Paramount, CBS, and other assets, marking the first time the Redstone family will relinquish control in decades. Regulatory approvals, especially from the FCC, are still required.
Ellison’s Skydance, valued at $4.75 billion, will contribute to a $28 billion total enterprise value. After ten months of negotiations, Ellison secured the agreement with Redstone, allowing Paramount a 45-day period to seek superior offers before finalizing with Skydance to protect against shareholder lawsuits. Skydance and private equity partners, including RedBird Capital, will invest $6 billion in Paramount’s portfolio, which includes Paramount Pictures, CBS, Nickelodeon, and Paramount+. The new deal offers common shareholders $15 per share, a 48% premium over recent values. Shari Redstone will receive $2.4 billion for her preferred shares, which give her 77% voting power but only 10% equity.
If the deal proceeds, Skydance will own 70% of Paramount’s equity and all Class A shares. Despite Paramount being on the market for years, the 45-day window may attract other potential buyers, including Barry Diller and Edgar Bronfman Jr.
The new management aims to rejuvenate Paramount with modern technology and creative leadership. David Ellison remarked: “This is a defining and transformative time for our industry… We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership, and a creative discipline”. RedBird Capital’s Gerry Cardinale highlighted the move’s significance, stating the new Paramount would become “the pace car” for modern media giants. He believes the company’s iconic brand and library can thrive with visionary leadership and operational expertise.
The revised terms have garnered unanimous support from Paramount’s special board committee, headed by Charles Phillips Jr., ensuring the deal delivers immediate value and future growth opportunities for shareholders. Phillips expressed satisfaction, emphasizing the agreement’s potential to position Paramount for success in an evolving industry landscape.
SOURCE Variety
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Skydance Media has finalized a significant deal with Paramount Global, ushering in a new era for the companies. David Ellison, Skydance’s founder, will become chairman and CEO of the expanded Paramount, while former NBCUniversal CEO Jeff Shell will serve as president.
Shari Redstone emphasized her father Sumner Redstone’s vision that “content was king” when he acquired Viacom in 1987. “We want to fortify Paramount for the future while ensuring that content remains king,” she stated. Redstone expressed confidence in Skydance’s strategic vision and resources to drive Paramount’s growth in a changing industry. The $8 billion transaction involves substantial investments to rejuvenate Paramount, CBS, and other assets, marking the first time the Redstone family will relinquish control in decades. Regulatory approvals, especially from the FCC, are still required.
Ellison’s Skydance, valued at $4.75 billion, will contribute to a $28 billion total enterprise value. After ten months of negotiations, Ellison secured the agreement with Redstone, allowing Paramount a 45-day period to seek superior offers before finalizing with Skydance to protect against shareholder lawsuits. Skydance and private equity partners, including RedBird Capital, will invest $6 billion in Paramount’s portfolio, which includes Paramount Pictures, CBS, Nickelodeon, and Paramount+. The new deal offers common shareholders $15 per share, a 48% premium over recent values. Shari Redstone will receive $2.4 billion for her preferred shares, which give her 77% voting power but only 10% equity.
If the deal proceeds, Skydance will own 70% of Paramount’s equity and all Class A shares. Despite Paramount being on the market for years, the 45-day window may attract other potential buyers, including Barry Diller and Edgar Bronfman Jr.
The new management aims to rejuvenate Paramount with modern technology and creative leadership. David Ellison remarked: “This is a defining and transformative time for our industry… We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership, and a creative discipline”. RedBird Capital’s Gerry Cardinale highlighted the move’s significance, stating the new Paramount would become “the pace car” for modern media giants. He believes the company’s iconic brand and library can thrive with visionary leadership and operational expertise.
The revised terms have garnered unanimous support from Paramount’s special board committee, headed by Charles Phillips Jr., ensuring the deal delivers immediate value and future growth opportunities for shareholders. Phillips expressed satisfaction, emphasizing the agreement’s potential to position Paramount for success in an evolving industry landscape.
SOURCE Variety
Share:
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