Skydance Media’s $8 Billion Acquisition of Paramount Global and the Co-CEOs Memo

Following the announcement of Skydance Media’s $8 billion acquisition of Paramount Global, Paramount’s current co-CEOs, Brian Robbins, George Cheeks, and Chris McCarthy, informed staff that operations will remain unchanged until the transaction is finalized. The deal is projected to close in the first half of 2025, pending regulatory approvals.

The future roles of the current co-CEOs under Skydance ownership remain uncertain. However, it has been confirmed that Skydance Media’s David Ellison will assume the roles of chairman and CEO, with former NBCUniversal chief Jeff Shell stepping in as president.

Shari Redstone, the controlling shareholder of Paramount Global, acknowledged the significant contributions of the co-CEOs and elaborated on the company’s choice of a three-headed CEO model while negotiating with Skydance. She emphasized the board’s commitment to exploring all opportunities to enhance the company’s future and maximize shareholder value.

The co-CEOs reiterated their dedication to continuing Paramount’s independent operations and strategic plan, which includes modernizing the organization by streamlining teams, eliminating redundant functions, and reducing workforce size. They also highlighted their ongoing efforts to transform global streaming and optimize the asset mix by divesting certain assets.

Paramount Global is already in discussions with potential investors for Paramount+ and is preparing BET Media for sale, aiming to achieve $500 million in overhead savings. The co-CEOs also praised the potential of the merger, combining Skydance’s financial resources, operational expertise, and advanced technology with Paramount’s iconic intellectual property, extensive film and television library, and robust linear and streaming platforms.

Despite Paramount Global’s nearly $15 billion in long-term debt, it is not an immediate concern. Wall Street has expressed skepticism about Paramount’s future as a viable streamer due to high overhead costs, a challenge faced by many major studios entering the OTT space.

The Special Committee of Paramount’s Board of Directors has a 45-day period to evaluate other offers, but the current news strongly suggests a favorable outcome for Skydance. As of this update, Paramount Global shares saw a slight increase, trading at $11.83 in after-hours trading.

Following is the memo from the CEOs:

Hi Everyone,

Today marks an important milestone for Paramount, as we just announced a definitive agreement with Skydance Media. By combining Skydance with Paramount, we would build on our storied legacy to create an even stronger, next-generation media and technology leader positioned to win in today’s rapidly transforming media landscape. 

As Shari shared, we expect this transaction to close in the first half of 2025 since it’s subject to regulatory approvals and other steps necessary to complete the deal. The agreement also includes what’s called a “go-shop” provision, which means that the Special Committee of Paramount’s Board of Directors and its representatives will be permitted to actively solicit and evaluate alternative acquisition proposals for a 45-day period.

Until the transaction closes, it’s business as usual – we will continue to operate as an independent company and move forward with the strategic plan we outlined at our town hall. This includes actions to modernize our organization by streamlining teams, eliminating duplicative functions, and reducing the size of our workforce. We will also continue to explore opportunities to transform global streaming and optimize our asset mix by divesting some of our assets.

We have been on a journey to transform Paramount for the future, and thanks to your hard work, Paramount brings tremendous value to this combination with Skydance. Paramount continues to be the home of invaluable IP that powers the best that entertainment has to offer to audiences around the world and a vibrant creative culture. And our assets are among the most compelling in the industry, including the number one US broadcast network with CBS and our leading free-to-air networks in the UK, Australia, Argentina, and Chile; iconic brands like Nickelodeon, MTV, BET, and Showtime; a top five SVOD service in the US with Paramount+; and a leading global free ad-supported streaming service in Pluto TV. And, of course, Paramount Pictures continues to create genre-spanning films that deliver at the box office, most recently with A Quiet Place: Day One – the latest addition to our 100-year-old film library.

This transaction would combine Skydance’s financial resources, deep operating experience, and cutting-edge technology with Paramount’s iconic IP, deep film and television library, proven hit-making capabilities, and linear and streaming platforms that reach millions of viewers. And, we already know Paramount and Skydance, led by David Ellison, can achieve incredible results together, as evidenced by our strong, 15-year collaboration that has delivered highly successful films and franchises like Top Gun: Maverick and Mission: Impossible – Fallout.

The Paramount that we know today would not be possible without the leadership of Shari and the Redstone family. It is because of their vision and support over the many years that we are one of the leading global entertainment companies in the world, with the best team in the business. We would like to sincerely thank Shari and her entire family for their unwavering support and leadership. We would also like to thank our Board of Directors, who have helped guide us along the way. We appreciate all that they do on behalf of Paramount.

And most importantly, we want to thank all of you, our Paramount Global team, for all you have done and continue to do to drive Paramount to new heights.

We know you will have questions, and we’ll share as much information as we can throughout this process. In the meantime, you can read more about the agreement in the press release here.

Thank you,
George, Chris, and Brian

Have you read?
Best countries for hiring freelancers.
Highest Paid Big Pharma CEOs And Top Executives.
Best Websites For CEOs, business leaders, and high-net-worth individuals.
Best Executive Search Firms And Consultants in America.
Revealed: Most Powerful Women In The World.