Paramount Global Seals Major Deal With Skydance
Paramount Global Seals Major Deal With Skydance
Paramount Global and Skydance Seal Deal for National Amusements.
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Paramount Global has reached a deal with David Ellison's Skydance Media to sell Shari Redstone's National Amusements, the controlling shareholder of Paramount. Bringing together two formidable entities under one roof.
The transaction between Skydance Media and Paramount Global (NASDAQ: PARA, PARAA) involves a two-step process, culminating in the formation of "New Paramount" – envisaged as a next-generation leader in media and technology. This comprehensive arrangement includes the acquisition of National Amusements, Inc. (NAI), which holds a controlling stake in Paramount, followed by a merger of Skydance and Paramount Global. Here's an overview of the transaction overview:
Acquisition of National Amusements, Inc. (NAI): By acquiring NAI, Skydance will gain a controlling interest in Paramount, providing a solid foundation for the subsequent merger.
Merger of Skydance and Paramount Global: This merger will combine the strengths and resources of both companies, creating a powerful entity poised to dominate the media and entertainment sector.
This union is built upon complementary strengths. Skydance brings financial resources, deep operational experience, and expertise in cutting-edge technology. On the other hand, Paramount contributes its iconic intellectual property (IP), extensive film and television library, and proven success in producing hit content. Paramount's linear and streaming platforms, which reach millions of viewers worldwide, will further enhance New Paramount's market presence. The newly formed entity is committed to being a premier destination for storytellers, dedicated to producing top-quality content. New Paramount aims to improve profitability, foster stability and independence for creators, and enable more investment in growth areas. This vision ensures that Paramount will continue to be a world-class media enterprise, focusing on technological advancements across various entertainment platforms, including animation, gaming, film, sports, news, and television.
Leadership and Management
David Ellison will lead New Paramount as Chairman and Chief Executive Officer, with Jeff Shell serving as President. Both leaders bring a wealth of experience and expertise in driving creative and media company growth. Their leadership is expected to enhance Paramount's performance and drive further advancement. Shari Redstone, Chair of Paramount Global and Chair, President, and CEO of National Amusements, Inc., emphasized the importance of this transaction in preserving and fortifying Paramount's legacy. In her statement, she said:
"In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global. He had a vision that 'content was king' and was always committed to delivering great content for all audiences around the world. That vision has remained at the core of Paramount’s success, and our accomplishments are a direct result of the incredibly talented, creative, and dedicated individuals who work at the company. Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king. 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 vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”
The transaction is designed to preserve the over 100-year-old legacy of Paramount as one of Hollywood's most iconic production companies. It also maintains CBS's stature as a cherished source of news and entertainment. Furthermore, this deal is expected to safeguard American jobs, foster continued innovation, and secure a prosperous future for the creative community at Paramount. With a history of successful collaboration spanning 15 years, the Skydance-Paramount combination promises to unite key intellectual property and enhance Paramount’s exposure in next-generation digital businesses. This synergy is expected to foster innovation and growth, ensuring that Paramount remains a prominent player in the dynamic and evolving media landscape.
The agreement between Paramount Global and Skydance Media marks a achievement in the media and entertainment industry. By combining their strengths, resources, and visions, the two companies are poised to create a formidable entity that will lead the industry into the future. The formation of New Paramount reveals a commitment to quality content, technological advancements, and sustained growth.
Disclaimer: This article is intended for informational purposes only and does not constitute financial, legal, or professional advice. Readers should conduct their own research and consult with a professional before making any decisions based on the content herein.
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