Paramount had recently been on the market to merge with another company and while other studios met with them, Skydance is the one that just closed the deal.
Last Updated on June 5, 2024
Late last year, there were rumblings of a possible merger being considered with two movie studio giants — Warner Bros. and Paramount. It was reported that Zaslav met with Paramount Global CEO Bob Bakish in New York City to discuss a possible merger. The potential merger would bring many iconic entertainment franchises under one roof, including Star Trek, Harry Potter, Looney Tunes, Transformers, Mission: Impossible, DC, and more. It would also likely see the two streaming services — Max and Paramount+ — combine in order to more effectively challenge Netflix and Disney+.
Wall Street analysts were skeptical of that deal and knew that both companies would have to jump through significant hurdles in order for the deal to go through. That deal would ultimately fall through, but the New York Post is now reporting on a merger that has been sealed. Paramount and Skydance have just agreed to terms that will see both studios merging in an $8 billion deal. According to CNBC, the media company, Skydance, which was founded by David Ellison, has shaken hands with the legacy studio under the proposed deal by a special committee from Paramount to pay $2 billion for the parent company, National Amusements, which is controlled by majority stakeholder Shari Redstone.
Part of the merger deal will entail for Skydance to buy out almost half of Paramount’s class B shares for $4.5 billion, $15 apiece. Doing this is giving shareholders a stake in the newly formed company, according to CNBC’s David Faber. Early last month, it was revealed that Apollo and Sony had shown interest in acquiring Paramount in the amount of $26 billion and they had aimed to break up the company. Their proposal was turned down by Redstone as she was more interested in a deal that would keep the company together. The Warners-Paramount rumors would heat up when Redstone met with Zaslav last year. However, Bob Bakish would ultimately step down as CEO earlier this year and three executives at the company would take over the proceedings. This included CBS president and CEO George Cheeks; Chris McCarthy, president and CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, the head of Paramount Pictures and Nickelodeon.
Most importantly, it prevents the disappearance of another studio, with previously merged studios like 20th Century Studios little more than another Disney hub. This deal should keep Paramount going as an independent company for many years to come. Are you happy Paramount isn’t merging with Sony or WB? Let us know in the comments!
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Originally published at https://www.joblo.com/paramount-skydance-8-billion-merger/
