The deal for the merger between the famous Hollywood studio Paramount Global and Skydance Media is tagged at $28 billion. Under the new deal, the company will move out of the management of the Redstone family while trying to firm up its position in an entertainment business that has changed radically.

A Big Hollywood Change: Paramount Merges with Skydance

According to people briefed on the matter, Paramount Global, one of the oldest and most famous companies in Hollywood, is near to a deal with Skydance Media worth about $28 billion. Shari Redstone will sell her family’s controlling stake in the agency; she serves as the non-executive chair of Paramount. The roots of this long technology stretch back to the late Sumner Redstone, whose circle of relatives transformed a small chain of pressure-in cinemas into one large media empire.

End of an Era

The Redstone family has traditionally held the reins of Paramount. They transformed a small agency into a large media group with the inclusion of popular TV networks like CBS, Comedy Central, Nickelodeon, and MTV. “Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly evolving landscape,” said Shari Redstone.

A Global Reach

The TV stations affiliated with Paramount have more than 4.3 billion subscribers across over 180 countries and therefore are extremely popular. The deal would marry Paramount — known for cinematic classics such as “Chinatown” and “Breakfast at Tiffany’s” — to Skydance, which has shared the financial burden on recent hits like “Top Gun: Maverick” and “Star Trek into Darkness.”

Skydance’s Investment

As part of this deal, Skydance is reportedly going to invest some $eight billion in Paramount. This includes the cost of $2.4 billion that will be paid for National Leisure – the enterprise that controls Paramount. Although National Leisure owns only 10% of the stocks at Paramount, it does hold nearly eighty% of the voting rights and, therefore, big control over the employer.

A Long History

Paramount Global was initially established in 1914 as Paramount Pictures Corporation. Many successes of this studio include such hits as “The Godfather,” “Star Trek,” and the “Mission: Impossible” franchise. Things, however, haven’t been so great for the studio lately, with their stocks falling by more than 75 percent in the last five years.

Who owns Skydance?

David Ellison is part of the founder family of Skydance Media; his father is Larry Ellison, the co-founder of tech giant Oracle. The announcement comes eight months ahead of the merger date, after months of advanced talks. Shari Redstone has had meetings with a number of potential partners, including Sony and private equity firm Apollo.

Leadership Changes

In May, the CEO of Paramount, Bob Bakish, stepped out of the business enterprise due to apparent differences between him and Shari Redstone on the Skydance deal. This happened at a time when the worldwide enjoyment industry, whose landlord has traditionally used the approach of film and TV theater operations for becoming, was undergoing essential modification due to the upward thrust of video streaming offerings.