One of Hollywood’s biggest companies, Paramount Studios, strikes a merger deal with fil studio, Skydance Media. In accordance with the agreement, Shari Redstone, the non-executive chair of Paramount, will sell her family’s majority ownership of the business in a convoluted deal that would create a new company valued at about $28 billion (£21.9 billion).
“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 proposed merger would unite Paramount, the studio behind beloved movies like Chinatown and Breakfast at Tiffany’s, with its financier for a number of high-profile recent releases, such as Star Trek Into Darkness and Top Gun: Maverick. In accordance with the deal, Skydance will contribute almost $8 billion to Paramount, including $2.4 billion to National Amusements, the company that owns the group. Although National Amusements only holds 10% of the shares of Paramount Group, it is responsible for over 80% of its voting rights.
Paramount said it expected to close the deal by the summer of next year. The deal comes as the global entertainment industry is being transformed by the video-streaming revolution.