Paramount and Skydance merge and dream of becoming the Avengers of entertainment

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Deal Score0

The Paramount logo on a water tower

Soon, Paramount and Skydance will be one

© KI Photography/Shutterstock

After the merger of Warner Bros Discovery, and after months of rumors, a new massive entity in the entertainment sector is approaching: the merger of Paramount Global and Skydance Media. The latter will invest the tidy sum of 8 billion dollars to swallow up the former, which has been struggling for several years.

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A marriage of convenience for Paramount

More precisely, and subject to everything being validated by the summer of 2025 by the SEC and interested parties, Skydance will first invest $2.4 billion in cash in National Amusements. The Redstone family company owns 77% of Paramount's shares. In a second phase, Skydance will invest $4.5 billion in shares and cash in Paramount, which will therefore no longer be its parent company.

Skydance's current boss, David Ellison, will then become CEO of the new entity, a “new Paramount.” He has committed to “equip Paramount+ and the free streaming service, Pluto TV, with cutting-edge technology and modern infrastructure, while enhancing Paramount's traditional television networks.“Jeff Shell, former head of NBCUniversal, will be president.

Paramount in trouble for years

This merger comes at a time when Paramount has been struggling for many months with its studios and especially with its historic channels (CBS, MTV, Comedy Central and Nickelodeon) and only made the streaming shift late with Paramount+. Since 2019, its value has fallen by $17 billion. As for the Skydance studio, the latter has notably co-financed many Paramount films over the past 15 years, including major licenses such as Impossible mission, transformers Or Top GunThe studio also has its hands in other types of works, such as series on different streamers, as well as video games, including the future Marvel 1943: Rise of Hydra.

In its press release, Skydance states that it wants to: “reposition Paramount to improve profitability, foster stability and independence for creators, and enable greater investment in faster-growing digital platforms.

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