Skydance Media and Paramount Global Sign Definitive Agreement to Advance Paramount as a World-Class Media and Technology Enterprise

Core Viewpoint - The merger between Skydance and Paramount aims to create "New Paramount," a media and technology leader, enhancing content quality and profitability while preserving Paramount's legacy and American jobs [1][3][9]. Transaction Overview - Paramount Class A stockholders will receive $23 per share, while Class B stockholders will receive $15 per share in cash or stock election, totaling $4.5 billion in cash consideration available to public shareholders [1][14]. - The transaction values Skydance at $4.75 billion, with Skydance equity holders receiving 317 million Class B shares valued at $15 each [1][37]. - The merger represents a 48% premium for Class B stock and a 28% premium for Class A stock based on prices as of July 1, 2024 [2][38]. Strategic Goals - New Paramount will focus on delivering high-quality content and improving profitability, stability, and independence for creators, while investing in growth areas across various entertainment platforms [2][41]. - The transaction combines Skydance's financial resources and technological expertise with Paramount's iconic intellectual property and extensive film and television library [2][11]. Leadership and Management - David Ellison will serve as Chairman and CEO of New Paramount, with Jeff Shell as President, bringing extensive operational experience to drive growth [8][40]. - The new leadership team aims to enhance Paramount's brands and improve profitability through strategic initiatives and technological advancements [8][36]. Financial Implications - Skydance IG will invest up to $6 billion, including $2.4 billion for acquiring National Amusements and $1.5 billion to strengthen Paramount's balance sheet [6][33]. - The merger is expected to stabilize Paramount's financial position and allow for greater cash flow growth [17][41]. Legacy and Future Outlook - The merger preserves Paramount's over 100-year legacy as a leading production company and aims to secure a prosperous future for the creative community [3][10]. - The transaction is anticipated to close in the first half of 2025, subject to regulatory approvals [43].