Skydance to Take Over Paramount in $8 Billion Deal
Live long and prosper.
Skydance has gained control of Paramount in a deal worth $8 billion.
Paramount is the owner of the Paramount film and TV studios, Paramount+, CBS, and cable channels including Nickelodeon, MTV, and Comedy Central. Paramount has a long list of owned intellectual property, including Star Trek, Mission: Impossible, Top Gun, and SpongeBob SquarePants.
Under the agreement, Skydance will invest around $8 billion in Paramount, including paying $2.4 billion for National Amusements, which controls the group. A 'New Paramount' valued at $28 billion will be formed, with Skydance founder and CEO David Ellison in place as CEO of the new business. Skydance said it plans to “enhance and reinvigorate marquee Paramount and CBS brands” while improving profitability and investing more in “faster growing” digital platforms.
In its note to press, Skydance highlighted its video game business, which includes two in-house developers and upcoming console Marvel and Star Wars games, as well as its The Walking Dead VR game. Skydance’s Marvel game is Marvel 1943: Rise of Hydra, helmed by Amy Hennig of Uncharted fame. Hennig is also working on a new Star Wars game for Skydance.
The deal marks the end of an era for Paramount Global, one of Hollywood’s oldest companies. Under the terms of the deal, Paramount's non-executive chair Shari Redstone will sell her family's controlling stake in the company.
Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king.
Shari Redstone 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 strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”
Paramount said it expected to close the deal by the summer of next year.
Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.
