The entertainment industry has been shaken up by a new development as Paramount, facing financial difficulties and seeking investors, has reached a merger deal with Skydance. After much speculation and talks, the agreement has been finalized pending approval from the company’s top executives.

Skydance and Paramount reach a deal for $8 billion.

CNBC announced the merger of two companies, which is valued at an impressive $8 billion. This agreement signifies a strategic move for both companies in a highly competitive market, as well as a consolidation of their strengths.

Sony Pictures and Apollo Global Management, along with other entertainment firms, were monitoring Paramount closely. The final step in the process is securing the consent of Paramount’s controlling stakeholder, Shari Redstone, who owns 77% of the company’s primary shares through National Amusements, after the deal with Skydance is finalized.

The agreement terms are very impressive, with Redstone’s National Amusements set to receive $2 billion, while Skydance will buy nearly half of Paramount’s class B shares for $15 each, amounting to a substantial $4.5 billion.

Skydance and RedBird will provide more than $1.5 billion to bolster Paramount’s financial position, address financial difficulties, and enhance the new company’s financial stability.

The shift is not just at the corporate level. Paramount is now under the leadership of three executives following Bob Bakish’s departure as CEO in late April: George Cheeks, Chris McCarthy, and Brian Robbins.