One
of
Hollywood’s
oldest
companies,
Paramount
Global,
has
agreed
to
merge
with
independent
film
studio
Skydance
Media.
Under
the
deal,
Paramount’s
non-executive
chair
Shari
Redstone
will
sell
her
family’s
controlling
stake
in
the
company
in
a
complex
transaction
that
will
result
in
a
new
firm
worth
around
$28bn
(£21.9bn).
It
marks
the
end
of
an
era
for
the
Redstone
family,
whose
late
patriarch,
Sumner
Redstone,
transformed
a
chain
of
drive-in
cinemas
into
a
vast
media
empire.
As
well
as
Paramount,
the
group
includes
the
television
networks
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.
According
to
the
company
its
TV
channels
have
a
global
reach
of
over
4.3
billion
subscribers
across
more
than
180
countries.
The
merger
would
combine
Paramount,
home
of
classic
films
such
as
Chinatown
and
Breakfast
at
Tiffany’s,
with
its
financial
partner
on
several
recent
big
releases,
including
Top
Gun:
Maverick
and
Star
Trek
Into
Darkness.
Under
the
agreement,
Skydance
will
invest
around
$8bn
in
Paramount,
including
paying
$2.4bn
for
National
Amusements,
which
controls
the
group.
National
Amusements
owns
just
10%
of
Paramount
Group’s
shares
but
accounts
for
almost
80%
of
its
voting
rights.
Paramount
said
it
expected
to
close
the
deal
by
the
summer
of
next
year.
Paramount
Global
traces
its
origins
back
more
than
a
century
to
the
founding
of
Paramount
Pictures
Corporation
in
1914.
The
studio
has
made
many
hit
films,
including
the
Godfather,
Star
Trek,
and
Mission:
Impossible
series.
But
the
entertainment
giant
has
struggled
over
the
past
decade.
Paramount
Global’s
shares
have
fallen
by
more
than
75%
in
the
last
five
years.
Skydance
is
owned
by
David
Ellison,
the
son
of
Larry
Ellison,
who
founded
US
technology
giant
Oracle.
The
announcement
came
after
eight
months
of
negotiations
that
saw
Redstone
holding
talks
with
a
number
of
potential
partners
including
Sony
and
private
equity
firm
Apollo.
In
April,
Paramount’s
chief
executive
Bob
Bakish
left
the
company
after
clashing
with
Ms
Redstone
over
the
planned
Skydance
deal.
The
deal
comes
as
the
global
entertainment
industry
is
being
transformed
by
the
video-streaming
revolution.
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