Paramount Global for sale latest - Variety: Shari Redstone Tells Paramount Employees Skydance ‘Has a Clear Strategic Vision for the Future’; Co-CEOs Say in Memo ‘It’s Business as Usual’ for Now

Story from Variety:

After months of talks, Paramount Global and Skydance Media officially announced a deal to merge Sunday night.

Shari Redstone, non-executive chair of Paramount Global and its controlling shareholder through National Amusements Inc., addressed the pact in a memo to employees, as did the trio of co-CEOs currently leading the company: George Cheeks, president and CEO of CBS; Chris McCarthy, president and CEO, Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, president and CEO of Paramount Pictures and Nickelodeon.

“As a longtime production partner to Paramount, Skydance is well aware of what we have accomplished over the years and it is for that reason that they have pursued a combination with Paramount,” Redstone wrote. “They have a clear strategic vision for the future and the resources to build on Paramount Global’s competitive advantages to drive the Company’s success.”

In her memo, Redstone referred to her late father, Sumner Redstone, who assembled the pieces of what became Viacom and Paramount Global: “Our family has always been committed to continuing my Dad’s legacy and ensuring Paramount’s enduring success. Consistent with that, as the pace of change in the industry has continued to accelerate, it has been our responsibility to work with leadership to make changes in order to maintain our competitive position and fuel growth, thinking of both the near and longer term.”

The deal is expected to close in the first half of 2025 — and until then, the co-CEOs told employees in their own memo, “it’s business as usual.”

The current plan under Cheeks, McCarthy and Robbins includes layoffs and other measures aimed at achieving upwards of $500 million in annualized costs; selling assets to pay down debt; and pursuing a joint venture to scale up Paramount+ and accelerate its turn to profitability.

“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,” Cheeks, McCarthy and Robbins wrote.

Under the two-step Skydance-Paramount deal, Skydance will acquire Redstone’s National Amusements Inc., which holds a 77% controlling stake in Paramount; subsequently, Skydance will merge with Paramount Global. Once those transactions close, the management team of “New Paramount” will comprise Skydance chief David Ellison as chairman and CEO and ex-NBCUniversal chief Jeff Shell as president. The Ellison family and its financial partner, RedBird Capital Partners, said they will invest up to $6 billion into the “New Paramount.”

Before the Skydance-Paramount deal closes, Paramount Global may execute other transactions.

Warner Bros. Discovery has expressed interest in exploring a potential tie-up between Max and Paramount+. In addition, Paramount Global reportedly has initiated talks to sell BET to an investor group led by BET chief Scott Mills. And the company is expected to seek buyers for the famed Paramount Pictures Studio lot in L.A.