Paramount Global has "officially agreed to merge" with David Ellison’s Skydance Media in a "complicated deal that ends the Redstone family’s involvement with the Hollywood company." Skydance and its investors have agreed to spend more than $8B to acquire National Amusements, the family company that controls Paramount, and "invest in the new iteration of the iconic company." The deal "gives the beleaguered entertainment giant an injection of cash" at a time when the traditional media landscape "is in decline." The deal comes after a special committee of Paramount Global directors agreed to the merger. Under the agreement, Skydance will buy National Amusements in a deal with an equity value of $1.75B, then "merge with Paramount." The merger is "expected to take months to close" as regulators review the deal (WALL STREET JOURNAL, 7/8).
Ellison is "set to run Paramount" as its chair and CEO. Former NBCUniversal CEO Jeff Shell, who’s now a RedBird Capital exec, will "help manage the operation" as president. It’s "unclear whether the Skydance team will keep on the three division heads who are now running Paramount" -- Paramount Pictures CEO Brian Robbins, CBS President & CEO George Cheeks and Showtime/MTV Entertainment Studios President & CEO Chris McCarthy (L.A. TIMES, 7/7).
