Paramount Global and Skydance Media have finally reached the end of their long and winding merger road, announcing the close of their $8.4 billion combination and opening a new chapter for Hollywood.
The newly combined company is officially known as “Paramount, A Skydance Corporation,” according to a press release. Its stock will begin trading Thursday on the Nasdaq, under the ticker symbol PSKY.
“Today marks an exciting and pivotal moment as we prepare to bring Paramount’s legacy as a Hollywood institution into the future of entertainment,” Chairman and CEO David Ellison said in the release. “My vision is to honor exceptional storytelling while modernizing how we make and deliver content to support the world’s top creative talent, enhance experiences for audiences worldwide, and create sustainable value for our shareholders.”
Skydance’s two-step merger with Paramount, which involved first taking over its controlling shareholder, National Amusements, was backed by private equity firm RedBird Capital.
“Our investment in Paramount and long-term partnership with the Ellison family reflects our deep conviction in the value of world-class intellectual property and the potential to unlock substantial growth as these businesses navigate technological disintermediation and evolving consumer preferences,” RedBird Founder and Managing Partner Gerry Cardinale said. “We’ve been collaborating with David Ellison for the last 15 years and made our first investment in Skydance in 2019. Over this period, we’ve seen the power of an owner-operator model that integrates technological sophistication with a talent-friendly passion for producing great original content.”
Thursday’s formal announcement came as Ellison, Cardinale and other executives gathered in New York for a press conference. It will be the first chance for the media to hear directly from the new management team, which has had to stay largely out of view as the regulatory process unfolded.
Skydance announced its merger proposal in July 2024, prevailing over multiple suitors, in part because of its long relationship with Paramount as a co-finance partner. At the end of last yeat, it appeared that the tie-up would get the stamp of approval early in 2025. Instead, the process dragged on for months amid a surprising level of scrutiny from the ostensibly pro-business Trump Administration. Looking to make an example of CBS News as part of his broader attack against the media, Trump sued the division over a 60 Minutes segment, extracting a $16 million settlement despite the unanimous view of legal experts that the suit had no merit. Meanwhile, Trump-appointed FCC Chairman Brendan Carr held up the deal over a “news distortion” complaint brought against CBS, which remains pending.
In the days since the FCC finally blessed the deal, Skydance has finalized the executive roster for the new company. Beyond the mere question of whether the transaction would ever close, many questions are looming over the newly minted entity. Among the biggest are the outlook for Paramount’s many cable networks given the moves across the sector to spin off or separate linear TV from streaming and other assets. Also top of mind is the potential extent of additional layoffs. Paramount had already cut 15% of its domestic workforce in 2024, adding additional layoffs earlier this year. While Ellison and RedBird have emphasized their passion for theatrical moviegoing and goal of preserving Paramount’s studio lot and heritage, it’s clear that more changes are coming.
Ellison called it “truly an honor and a privilege to help lead this iconic brand into its next chapter.” He added, “My experience at Skydance and across all levels of production has shown me what it takes to bring great stories to life – and just how powerful it is when visionary creators are supported by strong leadership and a clear mission. With a deep understanding of the industry and a strategic approach to growth, we will stay grounded in creative excellence, embrace cutting-edge innovation, and continue delivering the entertainment, news, and sports experiences that connect with audiences worldwide. Together, we have the opportunity not only to shape Paramount’s future, but also to play a meaningful role in where our industry is headed – and we can’t wait to get started.”
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