Paramount Global and Skydance Media

The merger between Paramount Global and Skydance Media has been a complex and evolving process, marked by strategic manoeuvres, leadership changes, and regulatory challenges. Here's an overview of the key events:

Background and Initial Discussions

In December 2023, Shari Redstone, president of National Amusements—the holding company with a controlling stake in Paramount Global—expressed interest in selling her stake, aiming to maintain the integrity of Paramount's assets, particularly CBS and Paramount Pictures. (Source)

Around the same time, discussions emerged about a potential merger between Warner Bros. Discovery and Paramount Global. However, by February 2024, Warner Bros. Discovery halted these merger talks. (Source 1 / Source 2)

Skydance's Interest and Competing Bids

In early 2024, Skydance Media, led by CEO David Ellison, considered an all-cash bid of $2.5 billion for Paramount Global. Subsequently, in April 2024, Sony Pictures Entertainment and Apollo Global Management explored a joint bid to acquire Paramount. (Source)

During this period, Paramount faced internal upheaval. In April 2024, CEO Bob Bakish stepped down, reportedly due to his opposition to the Skydance deal, and was replaced by an interim leadership team. (Source)

Negotiations and Agreement

By May 2024, Sony and Apollo submitted a non-binding offer of $26 billion in cash for Paramount. Despite this, Paramount continued discussions with Skydance. In June 2024, Paramount and Skydance reached a merger agreement, with Skydance revising its offer to include $2.25 billion for National Amusements and $4.5 billion in cash for Paramount's shareholders. (Source)

However, Shari Redstone was reportedly displeased with the revised terms, leading her to consider other bidders. By June 11, 2024, National Amusements announced that they had failed to reach an agreement with Skydance. (Source)

Regulatory Scrutiny and Challenges

The proposed $8.4 billion merger faced regulatory scrutiny. In December 2024, the Center for American Rights petitioned the Federal Communications Commission (FCC) to block the merger, citing concerns about foreign influence due to China's Tencent Holdings' investment in Skydance. Paramount and Skydance dismissed these objections as "unwarranted" and "meritless." (Source)

Additionally, the merger faced challenges from the Teamsters union, which raised concerns about potential job cuts and labour force reductions post-merger. (Source)

Current Status

As of January 2025, the merger is expected to close in the first half of the year, pending regulatory approvals. Skydance CEO David Ellison is set to helm the new combined entity, with Jeff Shell, former CEO of NBCUniversal, becoming president. In preparation, Paramount plans to streamline operations by eliminating redundant roles and possibly divesting some assets. (Source)

The merger signifies a significant shift in the media landscape, with the combined entity aiming to compete more effectively against industry giants. However, it also raises questions about the future of Paramount's diverse assets and the impact on its workforce.