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Paramount completes $8 billion merger with Skydance Media in bid to ‘revitalize’ streamer | Analysis

Paramount completes  billion merger with Skydance Media in bid to ‘revitalize’ streamer | Analysis

Paramount Global will complete its $8 billion merger with Skydance Media, valuing the organization at around $28 billion and ending the Redstone family’s relationship with the company founded by Michael Redstone in 1936.

Merger The deal, expected to close in early 2025, sees Skydance’s buyout consortium — comprised of billionaire founder David Ellison and multiple private equity groups, including RedBird Capital Partners — pay $2.4 billion in cash to buy National Amusements, which owns a controlling stake in Paramount.

Ellison will serve as Chairman and CEO of the new company, while Jeff Shell, former CEO of NBCUniversal, will serve as Chairman.

The Skydance acquisition could mean a new lease of life for Paramount, which lost about $17 billion in its valuation between 2019 and 2022, according to Reuters.

“In 1987, my father, Sumner Redstone, purchased Viacom and began building and growing the businesses now known as Paramount Global,” said Shari Redstone, Chairman of Paramount Global and Chairman, President and CEO of National Amusements, Inc. “He had a vision that ‘content is king’ and was always committed to delivering great content to all audiences around the world.

“This vision has remained at the core of Paramount’s success, and our achievements 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 strengthen Paramount for the future while ensuring that content remains king. We hope the Skydance transaction will enable Paramount to continue its success in this rapidly changing environment.

“As Paramount’s longtime production partner, Skydance knows Paramount well and has a clear strategic vision and the resources to lead it into its next phase of growth. We believe in Paramount and always will.”

It is noteworthy that Paramount is struggling to gain a foothold in the streaming industry with Paramount+, which is trying to compete with platforms such as Netflix, Amazon Prime and Disney+.

The platform reported a 71 million users, this Lost $490 million It is expected to launch in the fourth quarter of 2023 and is not expected to become profitable in the U.S. until 2025.

“This is a defining and transformative time for our industry and for the storytellers, content creators and financial stakeholders who are invested in the legacy of Paramount and the longevity of the entertainment economy,” said David Ellison, Founder and Chief Executive Officer of Skydance.

“I am incredibly grateful to Shari Redstone and her family for entrusting us with the opportunity to lead Paramount. We are committed to energizing the business and supporting Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich future generations.”