In a landmark deal, Shari Redstone has agreed to sell control of Paramount Global to a consortium led by Skydance, the production company headed by David Ellison, and Gerry Cardinale’s RedBird Capital. This transaction will transfer Redstone’s majority stake in National Amusements, thereby securing control of Paramount, which owns Paramount film and TV studios, Paramount+, CBS, and various cable channels including Nickelodeon, MTV, and Comedy Central.
The deal, pending regulatory approval and completion, concludes months of speculation and negotiations. Talks between the Skydance consortium and Redstone began late last year but faced multiple setbacks, with Redstone rejecting a prior agreement at the last moment. Persistent discussions eventually led to a new arrangement that gained Redstone’s approval.
Following the closure of the deal, Paramount plans to acquire Skydance, with Skydance’s leadership team taking the helm at the entertainment company. David Ellison will become CEO, and former NBCUniversal CEO Jeff Shell, currently with RedBird, will serve as president. The Skydance consortium will invest a total of $8.4 billion, including $2.4 billion in cash, $4.5 billion in stock/cash merger consideration, and $1.5 billion in primary capital to strengthen Paramount’s balance sheet. The transaction also allows Class A and Class B shareholders to cash out at $23 and $15 per share, respectively, with Skydance expected to own 70% of the outstanding shares.