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Skydance Media and Paramount Global Unite in $8 Billion Deal to Form Next-Gen Media Giant "New Paramount"

Skydance Media and Paramount Global Unite in $8 Billion Deal to Form Next-Gen Media Giant
In a landmark move set to reshape the entertainment landscape, Skydance Media and Paramount Global have signed a definitive agreement to create New Paramount, a next-generation media and technology powerhouse. The strategic merger involves a two-step transaction where Skydance's investor group, including the Ellison family and RedBird Capital Partners, will invest over $8 billion in the new entity and acquire National Amusements, Inc.

Key elements of the deal include significant financial incentives for Paramount shareholders. Class A stockholders will receive $23 per share, while Class B stockholders will get $15 per share in a cash/stock election. This represents a substantial premium over current stock prices, with $4.5 billion in cash consideration available to public shareholders.

David Ellison will helm New Paramount as Chairman and CEO, with Jeff Shell as President. The leadership team aims to leverage Skydance's innovative approach and Paramount's rich content library to create a premier destination for top-tier storytelling. The merger will enhance Paramount’s digital platforms, including Paramount+ and Pluto TV, while revitalizing its iconic brands like CBS.

This merger values Skydance at $4.75 billion and involves Skydance merging with Paramount in an all-stock transaction. Post-transaction, the Skydance investor group will own a majority stake in New Paramount, including 100% of Class A shares and 69% of Class B shares.

The partnership promises to foster creative independence, boost profitability, and ensure significant investment in digital growth areas. Paramount's content platform will be fortified with state-of-the-art technology and modern infrastructure, positioning it as a leader in animation, gaming, film, sports, news, and television.

The transaction is set to close in the first half of 2025, pending regulatory approvals and other customary closing conditions. This merger marks a pivotal moment for Paramount, ensuring its legacy as a bastion of quality entertainment and innovation.

Click on the file attached to read the full official press release.
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