Paramount Global, the parent company of CBS Sports, has agreed to merge with Skydance Media in a deal worth US$8.4 billion.
The complex transaction will see Skydance, which is the smaller of the two companies, acquire Paramount’s own parent National Amusements before buying out certain shareholders and then merging the two entities together upon completion.
Skydance chief executive David Ellison, the son of Oracle founder Larry, will become chairman and chief executive of ‘new’ Paramount. Jeff Shell, chairman of sports and media at Skydance’s investment partner RedBird Capital Partners, will serve as president.
While Ellison’s interest has been driven by the prospect of acquiring one of the biggest film studios in Hollywood, Skydance will control CBS, one of the ‘big four’ major US television networks, the Paramount+ streaming service, and a suite of major cable channels including MTV, Comedy Central and Nickelodeon if the merger gains regulatory approval.
“This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy,” said Ellison. “I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energising the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”
Talks between the two sides had been ongoing since the start of the year, with the Redstone family looking to sell Paramount amid challenging market conditions. Paramount remains a profitable business but is contending with declining cable revenues and the necessary costs of adapting to the streaming era of entertainment and competing with the likes of Netflix and Disney.
Last month it was reported that talks between Paramount and Skydance had broken down due to the complexities of the deal. Other reported interested parties included Cox Media Group owner Apollo Global Management, media entrepreneur Byron Allen and Warner Bros Discovery (WBD), which was interested in a merger to create a more effective challenger to the likes of Disney+ and Netflix.
By SportsProMedia
