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Skydance Media to Acquire Paramount Global in $8 Billion Deal, Valuing New Entity at $28 Billion

Jul 8, 2024, 02:40 PM

David Ellison's Skydance Media has reached an agreement to acquire Paramount Global in a landmark $8 billion deal, valuing the new entity at $28 billion. Paramount's special committee has approved the merger, with Shari Redstone agreeing to sell her controlling share in the media giant, including National Amusements. The deal, which includes a 45-day 'go-shop' period, allows Paramount to seek better offers, with a $400 million breakup fee if another buyer is found. Skydance will invest $1.5 billion directly into Paramount's balance sheet and plans to implement over $2 billion in cost cuts. David Ellison will become Chairman and CEO of the new entity, with former NBCUniversal CEO Jeff Shell serving as President. The merger is expected to close in the first half of 2025 and aims to position Paramount, which owns brands like CBS and MTV, as a tech-savvy, creator-friendly company. Larry Ellison, David's father and Oracle founder, will invest $6 billion into the deal, with RedBird Capital contributing the remaining $2 billion.