After months of uncertainty, regulatory delays, and public scrutiny, Paramount Global and Skydance Media have officially completed their long-awaited $8.4 billion merger. The newly formed company will operate under the name "Paramount, A Skydance Corporation" and begin trading on the Nasdaq under the ticker symbol PSKY starting Thursday.
"Today marks an exciting and pivotal moment as we prepare to bring Paramount's legacy as a Hollywood institution into the future of entertainment. My vision is to honor exceptional storytelling while modernizing how we make and deliver content to support the world's top creative talent, enhance experiences for audiences worldwide, and create sustainable value for our shareholders," said David Ellison, who will serve as Chairman and CEO of the new entity.
Skydance's acquisition of Paramount involved a strategic two-step process, beginning with the purchase of controlling shareholder National Amusements. The deal was backed by private equity firm RedBird Capital, which has maintained a long-standing relationship with Ellison and Skydance.
Gerry Cardinale, Founder and Managing Partner of RedBird, said, "Our investment in Paramount and long-term partnership with the Ellison family reflects our deep conviction in the value of world-class intellectual property and the potential to unlock substantial growth as these businesses navigate technological disintermediation and evolving consumer preferences. We've been collaborating with David Ellison for the last 15 years and made our first investment in Skydance in 2019. Over this period, we've seen the power of an owner-operator model that integrates technological sophistication with a talent-friendly passion for producing great original content."
While Skydance officially proposed the merger in July 2024, its road to completion was anything but smooth. Despite Skydance's existing partnership with Paramount as a frequent co-financing partner, the deal faced multiple hurdles, particularly from the Trump administration. A surprising level of resistance emerged, including a $16 million settlement extracted by Trump from CBS News over a controversial 60 Minutes segment - a lawsuit widely dismissed by legal experts as meritless. Additionally, Trump-appointed FCC Chairman Brendan Carr delayed the deal, citing a "news distortion" complaint against CBS that remains unresolved.
The formal merger announcement came Thursday during a press conference in New York, where Ellison, Cardinale, and other executives addressed the media for the first time since regulatory scrutiny forced them to stay mostly silent during the approval process.
Now that the merger is finalized, attention turns to the future of Paramount's expansive media empire. The company has already undergone significant restructuring, including a 15% reduction in its domestic workforce in 2024 and further cuts earlier this year. Additional layoffs are expected as the new leadership seeks to streamline operations and reposition Paramount for the digital age.
Key strategic questions remain unanswered: What will happen to Paramount's extensive portfolio of cable networks in an era when most media giants are spinning off linear assets? How will the company balance its commitment to theatrical releases with the growing dominance of streaming platforms?
Still, Ellison is optimistic about the path forward.
"It's truly an honor and a privilege to help lead this iconic brand into its next chapter," he said. "My experience at Skydance and across all levels of production has shown me what it takes to bring great stories to life - and just how powerful it is when visionary creators are supported by strong leadership and a clear mission. With a deep understanding of the industry and a strategic approach to growth, we will stay grounded in creative excellence, embrace cutting-edge innovation, and continue delivering the entertainment, news, and sports experiences that connect with audiences worldwide. Together, we have the opportunity not only to shape Paramount's future, but also to play a meaningful role in where our industry is headed - and we can't wait to get started."