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TRENDING
July 10, 2024
Paramount and Skydance Media Announce Merger Agreement
The combination will give Paramount access to Skydance’s in-house animation studio, led by pioneer John Lasseter, which will expand Paramount’s animation capabilities as well as consumer products opportunities over the long-term.
LOS ANGELES and
NEW YORK, — In a significant
move that will reshape the entertainment industry, Paramount Global and
Skydance Media have signed a definitive agreement to merge. The resulting
entity, dubbed “New Paramount,” aims to become a world-class media and
technology leader.
Investment and
Acquisition:
·
Skydance,
along with its private equity partners, will invest over $8 billion in New
Paramount.
·
The
Ellison Family and RedBird Capital Partners will acquire National Amusements,
Inc., which holds the controlling share stake in Paramount.
·
David
Ellison will serve as Chairman and Chief Executive Officer of New Paramount.
·
The
team plans to reposition Paramount for improved profitability and independence
while investing in digital platforms.
·
New
Paramount will focus on delivering top-quality content through wholly-owned
direct-to-consumer platforms like Paramount+ and Pluto.
·
The
merger aims to enhance and reinvigorate the Paramount and CBS brands.
·
Skydance
equity holders will receive 317 million Class B shares valued at $15 per share.
·
Paramount
Class A stockholders will receive $23 per share in cash/stock election.
·
The
per-share cash election represents a 48% premium to the Class B stock price as
of July 1, 2024.
·
Paramount
Class B stockholders can participate in New Paramount’s long-term value
creation.
The merger, subject
to regulatory approvals, positions New Paramount as a creative-driven
destination for storytellers, powered by cutting-edge technology. Industry
watchers eagerly await the impact of this transformative deal on the
entertainment landscape.
