Skydance and Paramount Global agree to merger
By Benjamin Chiou
Date: Monday 08 Jul 2024
(Sharecast News) - Skydance Media has agreed a merger with fellow American production company Paramount Global in a deal worth more than $8bn, effectively ending Shari Restone's decades-long ownership of Paramount.
In a complex deal announced on Monday, Skydance's founding Ellison family and its backers RedBird Capital Partners will take over National Amusements, the holding company of Paramount which also owns CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV.
National Amusements has been held by the Redstone family for four generations and has been a majority voting shareholder of Paramount Global for more than 35 years.
"Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king," said Shari Redstone, the head of National Amusements and Paramount Global's chair.
"Our hope is that the Skydance transaction will enable Paramount's continued success in this rapidly changing environment. As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will."
The deal, which values Skydance at $4.75bn, will see Skydance Investor Group invest $2.4bn in cash to buy National Amusements, and $4.5bn to Paramount's shareholders, as well as $1.5bn of primary capital to be added to Paramount's balance sheet.
Under the terms of the all-stock deal, Paramount's Class A stockholders will receive $23 per share, while Class B stockholders will get $15 a share, marking 28% and 48% premiums respectively.
The new company, New Paramount, will be led by David Ellison as chairman and CEO, and Jeff Shell as president.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN