Skydance Media and Paramount Global’s definitive agreement marked a major turn in film industry news, setting up a two-step transaction designed to create “New Paramount.” Announced on July 7, 2024, the deal called for the Skydance Investor Group, backed by the Ellison family and RedBird Capital Partners, to acquire National Amusements Inc., Paramount’s controlling shareholder, before merging Skydance with Paramount Global (Paramount Owner).
Paramount Owner: Key deal terms
The skydance paramount global deal was structured as both a change-of-control transaction and a recapitalization of Paramount. Under the agreement, the Ellison family and RedBird Capital Partners committed more than $8 billion, including $2.4 billion to acquire National Amusements, $4.5 billion in cash and stock consideration for public Paramount shareholders, and $1.5 billion in new primary capital for Paramount’s balance sheet.
Paramount Class A shareholders were offered $23 per share in a cash-or-stock election, while Class B shareholders were offered $15 per share in a cash-or-stock election. The agreement also valued Skydance at $4.75 billion in an all-stock merger, with the combined New Paramount carrying an enterprise value of about $28 billion.
David Ellison and Jeff Shell to lead New Paramount
Leadership is central to the skydance paramount combination. David Ellison, Skydance’s founder and chief executive, was named chairman and CEO of New Paramount, while Jeff Shell, chairman of RedBird Sports & Media and former NBCUniversal CEO, was named president. The companies said the new leadership team would focus on improving Paramount’s performance, strengthening its technology infrastructure, and reinvigorating brands including Paramount and CBS.
Paramount Owner: Market and industry impact
The deal underscored the pressure on legacy entertainment companies as streaming competition, cord-cutting, and rising production costs reshape the media business. Paramount brings major assets including Paramount Pictures, CBS, Nickelodeon, MTV, BET, Paramount+, Pluto TV, and a deep film and television library, while Skydance adds production experience across film, television, animation, games, sports, and interactive entertainment.
For Hollywood, the transaction signaled another step toward consolidation among studios seeking scale, stronger balance sheets, and more efficient streaming strategies. Executives also discussed plans to rebuild Paramount+, expand direct-to-consumer engagement, use more cloud-based production, and pursue roughly $2 billion in cost efficiencies and synergies.
What happens next
At announcement, the agreement included a 45-day “go-shop” period allowing Paramount’s special committee to solicit and evaluate alternative acquisition proposals. The transaction also required regulatory approvals and other customary closing conditions, though National Amusements’ written consent meant no additional Paramount shareholder approval was required.
The companies later announced an anticipated closing date of August 7, 2025, with New Paramount Class B shares expected to trade on Nasdaq under the ticker “PSKY.” The merger was completed on August 7, 2025, creating Paramount, a Skydance Corporation.
Paramount Owner: Background on Skydance and Paramount
Skydance was founded by David Ellison in 2010 and expanded from feature films into television, animation, games, and sports, with credits connected to franchises including “Top Gun,” “Mission: Impossible,” and “Transformers.” Paramount Global, meanwhile, is one of Hollywood’s most recognizable media companies, built around film, television, streaming, news, sports, and entertainment brands with global reach.