« Mission: Impossible » coproducer Skydance will acquire Paramount controlling shareholder Shari Redstone’s National Amusements.
Paramount Global has sold to Skydance Media in an $8 billion deal that merges David Ellison’s company with the legacy Hollywood studio after acquiring controlling shareholder Shari Redstone’s National Amusements Inc., the companies announced on Sunday.
The two-step deal that took months of negotiations marks the end of the Redstone family’s ownership of the historic entertainment conglomerate, which includes not only Paramount studios but Paramount+, CBS, MTV, Nickelodeon and Pluto.
Shari Redstone said in a statement: “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.”
The deal, backed by RedBird Capital and the Ellison family, provides a total of $8 billion for the deal in cash and stock including $2.4 billion for NAI, $4.5 billion to non-NAI shareholders in Paramount and an additional $1.5 billion in new capital.
The deal names Ellison as Chairman and Chief Executive Officer, and former NBCUniversal CEO Jeff Shell as President. The deal is expected to close in the first half of 2025.
The top deal points are as follows:
Skydance is being valued at $4.75 billion; Skydance equity holders will receive 317 million Class B Shares valued at $15 per share
Post transaction close, Skydance Investor Group will own 100% of New Paramount Class A Shares and 69% of outstanding Class B shares, or approximately 70% of the pro forma shares outstanding.
Paramount shareholders will receive in this deal a 48% premium to the price of the Class B stock as of July 1, 2024. Class A shares receive a 28% premium.
In a statement, Ellison said: “I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”
Under the terms of the deal, Skydance will pay Redstone $1.75 billion to acquire National Amusements, which controls 77% of Paramount’s class A voting stock.
