Paramount and Skydance have reportedly reached an agreement on an $8 billion merger, marking a significant development in Hollywood. The deal has yet to be signed by Shari Redstone, Paramount’s controlling stakeholder, but is expected to be finalized soon. David Ellison, the owner of Skydance and son of Larry Ellison, is set to become a major player in the industry as a result of this merger.
The proposed deal has received backing from investment firms RedBird Capital Partners and KKR, positioning Skydance as a strong contender for Paramount’s future. While other offers, including one from Apollo Global Management and Sony Pictures, have been considered, Redstone seems to prefer the Skydance deal due to its potential for keeping Paramount intact. The $8 billion merger would involve Skydance purchasing 50% of Paramount’s class B shares and contributing $1.5 billion to Paramount’s balance sheet.
Despite the significant financial implications of the deal, it is not expected to require a shareholder vote. Paramount has already undergone leadership changes, with CEO Bob Bakish stepping down and a trio of senior executives taking over as the “Office of the CEO.” The official announcement of the merger is eagerly awaited by industry insiders and fans alike.