Paramount Global (PARA) Shares Surge on $8 Billion Skydance Media Deal
Paramount Global (PARA) stock saw a significant rise on Monday following announcing a major merger agreement with Skydance Media. The deal, valued at approximately $8 billion, represents a significant consolidation in the media industry.
First, Skydance will pay $2.4 billion to acquire National Amusements, the holding company that controls Paramount through its Class A voting shares. Following this acquisition, Skydance will fully merge with Paramount.
Class A shareholders of Paramount will receive $23 per share, while Class B shareholders will get $15. This merger, still subject to regulatory approval, is expected to close in the first half of 2025. This deal concludes months of negotiations and marks the end of the Redstone era at Paramount.
David Ellison, the founder of Skydance and son of Oracle founder Larry Ellison, will lead the newly combined Hollywood studio. The buying consortium includes RedBird Capital Partners and KKR, which will invest over $8 billion into Paramount and acquire National Amusements. National Amusements is valued at $2.4 billion in this deal, including $1.75 billion in equity.
Since founding Skydance in 2010, David Ellison has overseen the production or co-production of numerous successful films and TV shows, including the blockbuster “Top Gun: Maverick” and the popular streaming series “Reacher.”
Paramount’s Class A shareholders will receive $23 per share in cash or stock, while Class B shareholders will receive $15 per share, totaling $4.5 billion in cash consideration available to public shareholders.
Additionally, Skydance will inject $1.5 billion of capital into Paramount’s balance sheet as part of the agreement.
“This is a new Paramount, and it’s not just a catchphrase,” said Jeff Shell of RedBird, former CEO of NBCUniversal, during a call with investors on Monday. “We believe this merger marks a new day for these combined assets.”
“We hope that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment,” Redstone said. “As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth.”
David Ellison will serve as CEO of the combined company, while Jeff Shell will take on the role of president. The merger remains subject to regulatory approval and includes a 45-day “go-shop period” allowing Paramount’s special committee to solicit other offers. The deal is expected to be finalized in the third quarter of 2025.
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