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Paramount Pictures Is Merging With The Company Behind Its Biggest Franchise – SlashFilm

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Now for the details: While the deal is awaiting a formal sign-off from Paramount’s controlling shareholder Shari Redstone, it is expected to be finalized. Redstone owns National Amusements, which itself controls a majority stake of Paramount. Not to get too deep into the weeds here, but the deal, as it currently exists, has Redstone being paid $2 billion for National Amusements. Skydance will buy out almost 50% of Paramount’s class B shares at $15 each, which comes to $4.5 billion. That means shareholders will have equity in the new company. Rather crucially, Skydance and RedBird will also chip in a reported $1.5 billion in cash to help reduce Paramount’s debt.

Even though Skydance pulled through in the end, other suitors emerged in recent months. Warner Bros. Discovery held talks with Paramount in December 2023, but those talks seemingly fell through pretty quickly. That is almost certainly for the best, given that WarnerMedia only recently merged with Discovery, which was rather messy. More recently, Sony and private equity firm Apollo Global Management made a $26 billion, all-cash offer for the company. That deal, however, likely would have been a nightmare in terms of regulatory approval. It also would have effectively reduced the number of major studios in Hollywood from five to four, which wouldn’t have been great for the average consumer.

This all comes as every company in the business is trying to secure a financial future in an ever-changing landscape. From the death of cable TV to the ever-evolving streaming wars, not to mention the perilous state of the box office, it’s increasingly difficult to see the best path forward. Mergers help offer some of these companies protection, with the idea being that bigger is safer. We’ll surely learn much more in the coming days as this situation evolves, and we’ll be sure to break it all down when the time comes. Stay tuned.

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