The entertainment industry is buzzing with news of Skydance Media’s $8 billion acquisition of Paramount Global, a deal set to reshape Hollywood’s landscape in 2025. Backed by RedBird Capital, the transaction merges Skydance with Paramount, creating a powerhouse that combines Paramount’s storied film and TV studios, CBS, Paramount+, MTV, Showtime, and other key assets under one roof.
A Strategic Vision for Paramount’s Future
Led by David Ellison, Skydance orchestrated the deal with meticulous precision, acquiring National Amusements—Paramount’s controlling shareholder—as a critical step in the merger. Shari Redstone, chairwoman of National Amusements, played a pivotal role in ensuring the deal balanced her family’s interests with the long-term success of Paramount and its stockholders.
“Ms. Redstone was single-mindedly focused on making sure not only that her family had a good outcome, but also that the company that she cared so much about — Paramount Global — and its stockholders had a good outcome,” noted Ropes & Gray attorney Oldshue, who advised National Amusements.
The New Paramount: Positioned to Compete
The new company will be led by Jeff Shell as incoming president, who has already outlined an ambitious vision. “Our goal, David [Ellison] and my goal and the rest of the team, is to win,” Shell stated in July. This drive for dominance will include a focus on direct-to-consumer streaming, with Paramount+ playing a key role in what Shell calls “the ultimate bundle” of entertainment services.
Skydance and Paramount aim to leverage their combined resources to create a leading entertainment platform that not only competes with but surpasses rivals like Netflix and Disney+. The inclusion of RedBird Capital as a financial backer provides the financial muscle needed to realize these goals.
The Road Ahead
The merger is expected to close in the first half of 2025, pending regulatory approval. While the deal’s size and scope are unmatched this year, its success will depend on how effectively the newly formed Paramount can integrate its assets, streamline operations, and execute its direct-to-consumer strategy.
The industry will be watching closely as the new Paramount takes shape, but one thing is clear: Skydance Media is not just playing to compete; it’s playing to win.
