Paramount and Skydance Agee to Merge in 2.4B Deal

Entertainment giant Paramount, known for its ownership of CBS and its production of blockbuster films such as “Top Gun” and “The Godfather,” has announced a merger with Skydance, the companies said in a joint statement.

The newly combined entity is valued at approximately $28 billion.

“Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king,” said Shari Redstone, chair of Paramount Global.

Redstone’s National Amusements controls more than three-quarters of Paramount’s Class A voting shares through the estate of her late father, Sumner Redstone, according to data firm FactSet. Shari Redstone has notably fought to retain control of the company.

Related: Skydance Media Secures Preliminary Merger Deal with Paramount

Skydance, based in Santa Monica, California, has been instrumental in producing several major Paramount hits in recent years. These include multiple Tom Cruise films such as “Top Gun: Maverick” and several installments of the “Mission Impossible” series. Founded in 2010 by David Ellison, son of billionaire Larry Ellison of Oracle fame, Skydance quickly established a production partnership with Paramount.

David Ellison is set to become chairman and chief executive officer of the new entity, which is being referred to as New Paramount.

The merger, however, is still subject to regulatory approval.

Source: The Wall Street Journal