Paramount Global has announced a merger with David Ellison’s Skydance Media.

This strategic move reshapes the media landscape, placing Ellison at the helm of the combined entity. Former NBCUniversal chief Jeff Shell will serve as president of the new conglomerate, according to CNN. 

The report stated that the merger, disclosed on Sunday, 7 July, signifies the end of Shari Redstone’s control over Paramount through National Amusements, a company her father, Sumner Redstone, meticulously built beginning in the 1980s.

This transaction involves Skydance purchasing National Amusements before merging with Paramount, valuing Skydance at USD 4.75 billion.

Ellison’s production company is set to invest USD 2.4 billion to acquire National Amusements and USD 4.5 billion for the stock/cash merger consideration. Additionally, USD 1.5 billion in primary capital will be infused into Paramount’s balance sheet.

In an investor call, Ellison and Shell outlined their vision for Paramount, focusing on becoming a technological leader in the streaming sector. They also announced a reorganisation plan that includes USD 2 billion in cost reductions.

This merger concludes a long, tumultuous saga that started in December, with exclusive negotiations beginning in April. The deal led to the exit of longtime Paramount CEO Bob Bakish. In the interim, Paramount was managed by Brian Robbins (CEO of Paramount Pictures), Chris McCarthy (CEO of Showtime and MTV Entertainment Studios), and George Cheeks (CEO of CBS).

The sale to Skydance Media, founded by David Ellison in 2010, provided an irresistible offer to Redstone: billions in cash and the assurance of selling to another industry titan. Skydance and Paramount have a well-established partnership, having co-produced movies such as Top Gun: Maverick and the Mission Impossible films.

Shell said, “We love the creative engine of this company, but a big chunk of the company is in the linear world — and we know that linear is challenged and declining. I think a lot of us in the business know we’ve got to run these businesses differently as they decline.”

Robbins said, "We’d like to take a moment to acknowledge the challenges of all the M&A speculation surrounding our company. We know what a difficult and disruptive period it has been. And while we cannot say that the noise will disappear, we are here today to lay out a go-forward plan that can set us up for success no matter what path the company chooses to go down.”

Redstone added, “Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king. We hope that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment.”