Corporate mergers|The merger of Paramount, which produced the Godfather and Titanic films, with its long-time partner Skydance Media ends the Redstone family’s era at the company’s helm.
Hollywood Paramount, one of the largest and oldest production companies, is merging with the much younger Skydance Media. The companies announced their merger late Sunday.
Among other things, the news agency reported on the matter Reuters.
The companies have been cooperating since 2009. They have released successful films, such as Top Gun the sequel Maverick’s and the latest Mission: Impossible series Dead Reckoning – the movie.
The companies agreed on a two-part process in which Skydance and its trading partners will buy National Amusements, owned by Paramount, for 2.4 billion US dollars, or about 2.2 billion euros.
In the second part of the merger, Skydance will combine with Paramount and offer $4.5 billion in cash or stock to the company’s shareholders and an additional $1.5 billion for Paramount’s balance sheet.
Entertainment giant Sony and private equity firm Apollo were also after Paramount in the past. They offered in May A sum of 24.3 billion euros from the company.
Fusion ends the Redstone family’s tenure at Paramount.
The current principal owner Shari Redstone father Sumner Redstone turned the drive-in movie theater chain into the media empire it is today. In addition to the Paramount production company, it consists of the television and radio company CBS, as well as the cable channels Comedy Central, Nickelodeon and MTV.
The founder and owner of Skydance is David Ellisonone of the founders of the information technology company Oracle by Larry Ellison son. He will take over as CEO of the new company.
Among other things titanic and Godfather-Paramount, which produced classic films, has had difficulty keeping up with the change in the media industry.
Paramount has lost nearly $17 billion in value since the end of 2019. The company’s traditional TV business has withered faster than streaming service Paramount+ has turned a profit.
Ellison has said that he intends to invest even more in the company’s streaming service.
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