Paramount revealed a significant agreement with Skydance on July 7, 2024, valued at $8 billion. This collaboration will create the “New Paramount,” marking a pivotal moment for both companies and enhancing Paramount’s standing in the entertainment industry. The deal will be completed in two stages to solidify their position in the competitive market.

Paramount and Skydance’s $8 billion merger is given the green light.

Founded in 2006 by David Ellison, the son of Oracle’s founder, Skydance has gained recognition in the entertainment industry for its top-notch projects and financial achievements. Teaming up with Paramount is a calculated move to broaden its scope and strengthen its impact in the sector.

In June, the companies initially agreed on a deal but later backed out due to conflicts with Paramount’s main shareholder. The finalized agreement will see Skydance’s content added to the Paramount Plus streaming service, which competes with major platforms such as Netflix, Disney Plus, Prime Video, and Max.

Skydance is recognized for its hit shows like Altered Carbon, Reacher, Foundation, and Jack Ryan, as well as popular franchise movies such as Star Trek, Mission Impossible, Terminator, and Top Gun: Maverick. These titles are expected to enhance the attractiveness of Paramount Plus to viewers.

The merger deal is expected to be finalized in 45 days. Paramount will entertain other offers during this time, but it is likely that the agreement with Skydance will go through due to the significant benefits anticipated from the merger.

Understand the contract.

The fusion process will consist of two primary stages.

Skydance’s acquisition of National Amusements for $2.4 billion secures control for the upcoming merger phase. Following this, Paramount will merge with Skydance for $4.5 billion to form the New Paramount, with Skydance also adding $1.5 billion to the new company’s financial balance sheet.