Who are Skydance, the (probable) new owners of Paramount

0
Who are Skydance, the (probable) new owners of Paramount

The Godfather, Forrest Gump, and Titanic everyone can be part SupremeIt’s the legacy, but this is the old Paramount: it’s time for the “New Paramount.” The entertainment conglomerate expects new ownership under Skydance Media will support it as a media and technology leader following Paramount’s bumpy path entering the streaming scene after decades of leaning heavily on theatrical and linear releases.

Why is Paramount for sale?

The company has faced problems recently

It’s hard to believe that the company that oversees the ratings giant SEllowstone and the rest of Taylor Sheridan’s verse, along with iconic franchises like SpongeBob SquarePants and Screamand newcomers with solid performance, such as Smile, could be losing money, but industry veteran Paramount has had a tough time trying to make sense of the overly saturated streaming landscape it entered nearly a decade after some of its competitors.

Shari Redstone, president of National Amusements (which owns Paramount Global), did her best to revitalize the conglomerate, merging CBS and Viacom in 2019, a dynamic duo that was initially valued at $30 billion. But two Hollywood attacks later and a non-consistently profitable streaming platform for starters, and Paramount Global has now lost $20 billion and needs a change in ownership and strategy if it wants to take on rivals Netflix, Peacock and Max.

How is Skydance preparing to acquire Paramount?

Skydance has a long history with Paramount

Skydance Media has a long history of collaboration with Paramount Global, achieving box office successes and streaming successes – awards darlings True courage and Top Gun: Maverickseveral of the Mission: Impossible films, and the Reach rebooting television series on Prime Video, to name a few. Skydance and Paramount Global already have some exciting projects in the works, including GI Joe and Alex Cruz adaptations (also for Prime Video), an untitled comedy-drama from Lemaa Nasserdeen that will air on Showtime and a fourth Star Trek reboot franchise film starring Chris Pine.

But it didn’t always seem like Skydance would end up victorious. There were several candidates interested in buying Paramountincluding Apollo Global Management, Sony and Warner Bros. Discovery, and there was even an acrimony with Skydance Media – negotiations between Redstone and Skydance temporarily ceased a few weeks before a deal was signed, with Redstone citing that she was considering selling national amusements at that moment, instead of Paramount merger with another company. However, an agreement was signed in July 2024, after talks between both parties resumed.

“‘New Paramount’ will be a premier creative destination for storytellers, dedicated to high-quality content, and will be positioned to improve profitability, promote stability and independence for creators, and enable further investment in growth areas,” stated a press release from Skydance Media. “The transaction will stabilize and strengthen Paramount as a world-class media company focused on technological advancements across multiple entertainment platforms, including animation, games, film, sports, news and television.”

Summarizing in numbers, the Skydance merger with Paramount was valued at approximately US$28 billion. (As of February 2024, Paramount Global alone is valued at $10 billion.) According to the company, Skydance will additionally invest up to US$8 billionwith a portion earmarked to help Paramount pay down its nearly $15 billion in debt and recapitalize its balance sheet. Furthermore, the agreement also encourages Class A and Class B shareholders allowing them to withdraw $23 and $15 per share, respectively.

What will Paramount be like post-deal?

Changes may not be obvious at first

Assuming a higher bid doesn’t emerge at the eleventh hour and/or regulators approve the deal, the sale of Redstone’s majority stake in National Amusements to Skydance will be completed sometime in the spring of 2025. The merger would see Skydance acquire Paramount Global, granting control over Paramount’s film and TV studios, 28 local CBS owned and operated TV stations, and cablers such as MTV, BET and The Smithsonian Channel. “New Paramount” will be led by Skydance Media founder David Ellison as chairman and CEO, and former NBCUniversal CEO Jeff Shell (who currently works at Skydance shareholder RedBird Capital Partners) as chairman. Additionally, Ellison will retain 100% of the voting rights of the Ellison family.

“This is a defining and transformative moment for our industry and for the storytellers, content creators and financial stakeholders who invest in Paramount’s legacy and the longevity of the entertainment economy.” Ellison said in a press release concluding months of back and forth negotiations with Redstone in July 2024. “I am incredibly grateful to Shari Redstone and her family who agreed to trust us with the opportunity to lead Paramount. We are committed to energizing the business and strengthening Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”

Upcoming Paramount Films

Release date

Gladiator 2

November 22, 2024

September 5th

November 29, 2024

Sonic the Hedgehog 3

December 20, 2024

Better man

December 25, 2024

Vicious

February 28, 2025

Novocaine

March 14, 2025

Mission: Impossible 8

May 23, 2025

New Trey Parker movie

July 4, 2025

The Smurfs movie

July 18, 2025

The naked weapon

August 1, 2025

Roof

October 3, 2025

The running man

November 21, 2025

The SpongeBob Movie: Search for SquarePants

December 19, 2025

Aang: The Last Airbender

January 30, 2026

Scream 7

February 27, 2026

In addition to leadership changes, we can expect tighter control of Skydance’s creative process, which could mean greater focus on expanding Paramount’s beloved franchises and resurrecting intellectual property. We may also see fewer third-party productions for Skydance (like making TV shows for Apple TV and Netflix without Paramount’s involvement) and more streamlined production by keeping projects in-house. Fortunately for Skydance MediaThere’s plenty of room to play in Paramount Global’s extensive film and television library and its portfolio of brands, which includes streamer Paramount+, as well as Nickelodeon and Comedy Central.

Meanwhile, as Paramount awaits the formal completion of the Skydance-Redstone deal, the entertainment conglomerate has been trying to cut costs, cutting 15% of its US workforce in an effort to save $500 million. One of the biggest losses Supreme faced in preparing for these pending investment gains was the closure of Paramount television studios.

Leave A Reply