Paramount Studios, a legacy studio in Hollywood, is set to merge with production company Skydance, marking the end of a decades-long run by the Redstone family. The merger is seen as a significant move to inject much-needed cash into Paramount, which has been struggling to adapt to the changing entertainment landscape. The deal will also bring about a new power player in the form of David Ellison, the founder of Skydance and son of billionaire Larry Ellison, the founder of Oracle.
Shari Redstone, through National Amusements, has owned the majority of Paramount's Class A voting shares, battling to maintain control of the company behind blockbuster films like Top Gun and The Godfather. The new combined company, valued at around $28 billion US, will be led by Ellison as chairman and CEO, pending approval from U.S. regulators.
Paramount's recent financial struggles have been ongoing, with the studio facing losses and debts. The company launched Paramount+ in 2021 in an attempt to capture the growing streaming audience, but its financial woes have continued to mount. The annual shareholder meeting in June saw the unveiling of a restructuring plan that includes major cost cuts.
Sumner Redstone, who passed away at 97, played a pivotal role in building a media empire that included CBS and Viacom. ViacomCBS, now renamed Paramount Global, has a rich history and a vast array of media assets. Skydance's merger with Paramount was not the only offer on the table, as Apollo Global Management and Sony Pictures also made competing bids. Warner Bros. Discovery had also explored a potential merger with Paramount, but talks reportedly came to a halt earlier this year.