The legendary Hollywood film studio Paramount Pictures is merging with Skydance Media, marking the end of the Redstone era and the beginning of new challenges in the world of streaming services.
Merger of media giants
Historic deal in Hollywood
The well-known film studio Paramount Pictures has entered into a merger agreement with Skydance Media, reports Reuters. The event marks the end of the Redstone family's long run at Paramount.
Merger stages and conditions
The merging process will take place in two steps. First, Skydance and its partners will acquire National Amusements, the company that holds Redstone's majority stake in Paramount, for $2.4 billion in cash. The next step will be Skydance's merger with Paramount, where shareholders will be offered $4.5 billion in cash or stock, plus an additional $1.5 billion to develop Paramount.
End of the Redstone Era
The merger marks the end of an era for Shari Redstone, whose father, Sumner Redstone, transformed the family's drive-in business into a powerful media empire that included Paramount Pictures, CBS and the cable channels Comedy Central, Nickelodeon and MTV.
New management
David Ellison, the 41-year-old son of Oracle co-founder Larry Ellison, will become chairman and CEO of the revamped Paramount. Jeff Schell, former CEO of NBCUniversal, will serve as president of the company.
Challenges and Prospects
Allison will face serious challenges as the entertainment industry changes rapidly due to the rise of streaming platforms. Paramount has lost about $17 billion in value since the end of 2019 due to the decline of traditional TV and the slow growth in profitability of the Paramount+ service.
Ellison has promised to bring advanced technology and modern infrastructure to Paramount+ and the free streaming service Pluto TV.
Difficult negotiations
The deal was preceded by months of tense negotiations that seemed hopeless after the Redstone dialogue abruptly ended on June 11. Ultimately, Skydance upgraded its offer to buy National Amusements to $1.75 billion and beefed up legal defenses against potential shareholder lawsuits.
Deal details
Under the terms of the deal, Skydance will merge with Paramount in a stock exchange, valuing Skydance at 4.75 billion dollars This would create a company with an enterprise value of $28 billion. Paramount will also have 45 days to find a better offer.
Glossary
- Paramount Pictures is one of the largest Hollywood film studios, founded in 1912.
- Skydance Media is an American film and television production company founded by David Ellison.
- National Amusements is an American private company that owns movie theaters and a controlling stake in Paramount Global.
- The Redstones are an influential American family that controlled Paramount for a long time.
- Oracle is an American corporation, one of the largest manufacturers of software for organizations.
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Discussion of the topic – End of an era: Paramount Pictures merges with Skydance Media
Hollywood film studio Paramount Pictures has agreed to merge with Skydance Media, marking the end of the Redstone family era. The deal will take place in two phases, starting with the acquisition of National Amusements.
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Oleksandr
Wow, this is truly an epochal event for Hollywood! 🎬 Paramount is a legend of the film industry. I wonder how this will affect the quality of the movies and series they release?
Isabelle
Oleksandr, I thought about it too! Maybe David Ellison's fresh perspective will bring new ideas. Although $17 billion in losses is terrible 😱 I hope they can compete with Netflix and Disney+
Giovanni
I feel like this could be the start of a new era for Paramount. Ellison is young and ambitious, and with these resources he can create something truly innovative. Who knows, Paramount+ could be the new Netflix? 🚀
Sophie
Giovanni, you are an optimist! 😄 But I agree that changes are needed. I wonder how this will affect the Paramount franchises? Mission Impossible, Transformers, Star Trek - I hope they remain in good hands
Heinrich
How are you all coping with these changes? Paramount has been around for a hundred years without these innovations of yours. Another rich man decided to go to the movies. It would be better if old films were re-released, not chasing fashion!
Oleksandr
Heinrich, I understand your concern, but the industry is not standing still. Look at the success of streaming services. Maybe Paramount+ with new management will be able to offer something unique? 🤔
Maria
And I'm interested in what will happen with Pluto TV? 📺 This is a free service, and it is quite popular. I hope the new owners will develop it further. It's a great alternative to paid subscriptions
Isabelle
Maria, good point about Pluto TV! Maybe they can integrate it with Paramount+ somehow? Imagine: premium content on Paramount+ and free on Pluto TV. It could attract different audiences 🎥🍿