Paramount Global and Skydance Media Form “New Paramount” in Landmark Agreement

Paramount Global announced that it has entered into a definitive agreement with Skydance Media to form a new entity, “New Paramount.” This partnership aims to position Paramount as a leading media and technology enterprise on a global scale.

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Paramount Global

Key Details of the Agreement:

1. Shareholder Compensation: Paramount Class A stockholders are set to receive $23 per share in cash or stock. Class B stockholders will receive $15 per share in a cash/stock election. The total cash consideration available to public shareholders amounts to $4.5 billion.
2. Significant Investments: The Ellison family and RedBird Capital Partners are committing over $8 billion to the new venture. This substantial investment underscores their confidence in the future success of New Paramount.
3. Leadership Changes: David Ellison has been appointed CEO of New Paramount, with Jeff Shell named as President. This leadership is expected to drive the company forward, leveraging their extensive experience in the media industry.
4. Ownership Structure: The Skydance investor group will own 100% of New Paramount Class A shares and 69% of outstanding Class B shares. This ensures that the investor group has significant control over the new entity.
5. Acquisition of National Amusements: As part of the agreement, the Skydance investor group will invest $2.4 billion to acquire National Amusements for cash. This acquisition is a strategic move to enhance the value and capabilities of New Paramount.
6. Financial Strengthening: An additional $1.5 billion of primary capital will be added to Paramount’s balance sheet. This infusion of capital is aimed at bolstering the financial stability and growth potential of the company.

Transaction Terms and Timeline:

• The definitive transaction agreement includes a 45-day go-shop period, during which a special committee of Paramount’s Board of Directors will evaluate any alternative proposals.
• The transaction is anticipated to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.

Strategic Objectives:

• Global Expansion: The collaboration with Skydance Media is designed to advance Paramount’s position as a world-class media and technology enterprise. By combining resources and expertise, New Paramount aims to expand its global footprint and enhance its content offerings.
• Technological Innovation: With a focus on innovation, New Paramount will invest in cutting-edge technologies to stay ahead in the competitive media landscape. This includes leveraging advancements in streaming, production, and distribution to deliver high-quality content to a global audience.
• Content Leadership: The formation of New Paramount is expected to strengthen the company’s content creation capabilities. By integrating Skydance Media’s production prowess with Paramount’s distribution network, the new entity aims to produce compelling content that resonates with diverse audiences.

Industry Impact:

• This landmark agreement is poised to have a significant impact on the media industry. The combined strength of Paramount Global and Skydance Media will create a formidable player in the market, capable of producing and distributing a wide range of high-quality content.
• The substantial investments by the Ellison family and RedBird Capital Partners reflect their confidence in the potential of New Paramount to drive growth and innovation in the industry.

Conclusion: Paramount Global’s definitive agreement with Skydance Media marks a transformative moment for the company. With substantial investments, strategic acquisitions, and strong leadership, New Paramount is well-positioned to become a leading global media and technology enterprise. As the transaction progresses, stakeholders and industry observers will be closely watching the developments and the impact of this landmark partnership on the media landscape.