Streaming: Paramount and Skydance agree on merger

After a long search, Hollywood studio Paramount has found a new owner. Film producer David Ellison is buying Paramount with his studio Skydance in a multi-stage deal involving a total of over USD 8 billion for shares and debt repayment. Skydance and Paramount are to merge as a result of the deal, with Ellison acting as CEO.

Skydance and Paramount have been negotiating a possible merger for months. In the meantime, talks appeared to have broken down: As recently as the beginning of June, Paramount parent company National Amusements announced that it had been unable to agree on a deal with Skydance.

"Crucial time for the industry"

Now all parties have been able to come to an agreement after all. "This is a crucial time for our industry," commented Skydance CEO David Ellison on the deal. "We are determined to revitalize the company and empower Paramount with contemporary technology, new leadership and a creative discipline to enrich generations to come." David Ellison is the son of Oracle co-founder Larry Ellison.

Paramount's parent company National Amusements has been looking to sell the traditional Hollywood studio for months and has not only been negotiating with Skydance. Warner Bros. Discovery and the investment company RedBird Capital are also said to have shown interest in the company. In a press release, Paramount writes that the deal should be completed in the first half of 2025. The deal also includes the streaming service Paramount+, which Paramount launched in Germany at the end of 2022.

"As a long-standing production partner of Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to lead the company into its next phase of growth. We believe in Paramount and always will," said current Paramount owner Shari Redstone.

(dahe)