What's happened
Paramount Global has agreed to merge with Skydance Media in a $28 billion deal, ending the Redstone family's control over the iconic Hollywood studio. The merger involves Skydance acquiring National Amusements, which holds the controlling stake in Paramount, for $2.4 billion. David Ellison, founder of Skydance and son of Oracle co-founder Larry Ellison, will become the CEO of the new entity, while Jeff Shell, former CEO of NBCUniversal, will serve as president. The merger aims to fortify Paramount's position in the evolving entertainment landscape, with significant cost cuts and a focus on technology and creativity.
What's behind the headline?
What the papers say
According to the NY Post, Mario Gabelli, a significant shareholder in Paramount, may file a lawsuit to challenge the Skydance-RedBird buyout, seeking a better deal for himself and his clients. Business Insider UK highlights the potential restructuring of Warner Bros. Discovery, which could impact the media landscape further. The Financial Times reports that Warner Bros. Discovery is considering splitting its digital streaming and studio businesses from its legacy television networks to boost its share price. The Guardian emphasizes the end of the Redstone family's involvement in Paramount, marking a significant shift in Hollywood's power dynamics.
How we got here
Paramount Global, one of Hollywood's oldest studios, has faced financial challenges in recent years, struggling to compete in the streaming market dominated by giants like Netflix and Disney. The Redstone family, through National Amusements, has controlled Paramount for decades, with Sumner Redstone transforming the family business into a media empire. The merger with Skydance Media, founded by David Ellison, aims to inject much-needed capital into Paramount and position it better for the future. The deal also involves significant cost cuts and a focus on technology and creativity to adapt to the evolving entertainment landscape.
Go deeper
- What are the potential benefits of the Paramount and Skydance merger?
- How will the merger impact the content offered by Paramount?
- What are the financial implications of the merger for Paramount?
Common question
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ViacomCBS Inc. is an American diversified multinational mass media conglomerate formed through the merger of CBS Corporation and the second incarnation of Viacom in 2019, which were split from the original incarnation of Viacom in 2005.
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Skydance Media, LLC is an American production company based in Santa Monica, California. Founded by David Ellison in 2006, the company entered a five-year partnership to co-produce and co-finance films with Paramount Pictures starting in 2009, and has ren
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David Ellison is an American film producer and the founder and CEO of Skydance Media.
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Shari Ellin Redstone is an American media executive with a background in numerous aspects of the entertainment industry and related ventures.
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National Amusements, Inc. is an American privately owned theater company and mass media holding company based in Norwood, Massachusetts, and incorporated in Maryland. It is the parent company of ViacomCBS.
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Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.
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Sumner Murray Redstone was an American billionaire businessman and media magnate. He was the majority owner and chairman of the National Amusements theater chain.
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Hollywood is a neighborhood in the central region of Los Angeles, California. Its name has come to be a shorthand reference for the U.S. film industry and the people associated with it.
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Warner Bros. Discovery is an upcoming American multinational mass media and entertainment conglomerate. The company will be formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed by mid-April 2022.
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Paramount Pictures Corporation is an American film studio and subsidiary of ViacomCBS. It is the fifth oldest film studio in the world, the second oldest film studio in the United States, and the sole member of the "Big Five" film studios still located in
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CBS is an American commercial broadcast television and radio network that is the flagship property of the CBS Entertainment Group division of ViacomCBS.
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David M. Zaslav is the president and chief executive officer of Discovery Inc., a position he has held since January 2007.
Most recently under Zaslav, Discovery acquired Scripps Networks Interactive, in a transaction which closed in March 2018.
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Jeff Shell is an American media executive who currently serves as the CEO for NBCUniversal.
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Joseph Robinette Biden Jr. is an American politician who is the 46th and current president of the United States. A member of the Democratic Party, he served as the 47th vice president from 2009 to 2017 and represented Delaware in the United States Senate