One of Hollywood’s oldest companies, Paramount Global, has agreed to merge with the independent film studio Skydance Media.
As part of the deal, Paramount’s non-executive chair, Shari Redstone, will sell her family’s controlling stake in the company through a complex transaction, creating a new entity valued at approximately $28 billion (£21.9 billion).
This merger signifies the end of an era for the Redstone family. The late Sumner Redstone, the family’s patriarch, had built a vast media empire from a chain of drive-in cinemas.
In addition to Paramount, the group includes television networks such as CBS, Comedy Central, Nickelodeon, and MTV.
“Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment,” Ms Redstone said in a statement.
The company claims that its TV channels reach over 4.3 billion subscribers in more than 180 countries.
The merger will unite Paramount, known for classics like *Chinatown* and *Breakfast at Tiffany’s*, with its financial partner on recent hits such as *Top Gun: Maverick* and *Star Trek Into Darkness*.
Under the agreement, Skydance will invest around $8 billion in Paramount, including a $2.4 billion purchase of National Amusements, which controls the group.
National Amusements owns just 10% of Paramount Group’s shares but holds nearly 80% of the voting rights.
Paramount expects the deal to be finalized by next summer.
Paramount Global’s history dates back over a century to the founding of Paramount Pictures Corporation in 1914. The studio has produced many successful films, including the *Godfather*, *Star Trek*, and *Mission: Impossible* series.
However, the entertainment giant has struggled over the past decade, with its shares dropping by more than 75% in the last five years.
Skydance is owned by David Ellison, the son of Larry Ellison, the founder of US technology giant Oracle.
The announcement follows eight months of negotiations during which Shari Redstone held talks with several potential partners, including Sony and private equity firm Apollo.
In April, Paramount’s CEO Bob Bakish left the company after disagreements with Redstone over the planned Skydance deal.
This deal comes as the global entertainment industry undergoes significant changes due to the video-streaming revolution.