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Cheeks, McCarthy and Robbins said they would continue with their restructuring plan, which includes job cuts and asset sales.
After months of discussions, Paramount Global and Skydance Media formalized their merger agreement on Sunday night.
Shari Redstone, non-executive chairwoman of Paramount Global and controlling shareholder through National Amusements Co., mentioned the agreement in a memo to employees, as did the three co-CEOs currently running the company: CBS president and CEO George Cheeks, Showtime/MTV Entertainment Studios and Paramount Media Networks president and CEO Chris McCarthy and Paramount Pictures and Nickelodeon president and CEO Brian Robbins.Please read the notes below.)
“As Paramount’s longtime production partner, Skydance understands what we’ve accomplished over the years, which is why they pursued a combination with Paramount,” Redstone wrote. “They have a clear strategic vision for the future and the resources to leverage Paramount Global’s competitive advantages to drive the company’s success.”
In the memo, Redstone said of his late father, Sumner Redstone, who put together the companies that became Viacom and Paramount Global: “Our family has always been committed to carrying on my father’s legacy and ensuring the enduring success of Paramount. Accordingly, as the pace of change in our industry continues to accelerate, it is our responsibility to think both short-term and long-term and collaborate with leadership to effect change, remain competitive and drive growth.”
The deal is expected to close in the first half of 2025, but until then, the co-CEOs told employees in a memo that it will be “business as usual.”
The current plan by Cheeks, McCarthy and Robbins includes job cuts and other measures aimed at cutting annual costs by more than $500 million, selling assets to pay down debt and pursuing joint ventures to scale Paramount+ and speed its turnaround to profitability.
“We have been on a journey to transform Paramount for the future, and thanks to your hard work, Paramount has brought tremendous value to this combination with Skydance,” Cheeks, McCarthy and Robbins wrote.
The two-step Skydance-Paramount deal will see Skydance acquire Redstone’s National Amusements, which owns a 77% controlling stake in Paramount. Skydance will then merge with Paramount Global. Once these transactions are complete, the “new Paramount” will have Skydance CEO David Ellison as chairman and CEO, and former NBCUniversal CEO Jeff Shell as president. The Ellison family and their financial partner, RedBird Capital Partners, said they will invest more than $8 billion in Paramount.
Paramount Global may execute other transactions before the Skydance-Paramount deal closes.
Warner Bros. Discovery has expressed interest in exploring a possible partnership between Max and Paramount+, and Paramount Global has reportedly begun talks to sell BET to an investor group led by BET chief executive Scott Mills. The company is also expected to seek a buyer for the famed Paramount Pictures Studios site in Los Angeles.
Read the note from Shari Redstone:
Good evening. We just announced that Skydance Media has signed an agreement to acquire National Amusements and combine the Skydance business with Paramount Global. I wanted to take this opportunity to reach out to you personally not only to share the news with you, but also to express my enormous gratitude to each and every one of you for all we have accomplished together over the past few decades.
As you know, my father built Viacom and CBS by bringing together the best assets in media, news and entertainment. There was much debate about whether content or distribution was king today, but my father made every decision based on the belief that content is king. In today’s crowded market, this belief is more important than ever. We continue to create content that resonates with consumers and that they continue to want and want more. Our success is due to what you all have accomplished individually and, more importantly, as a team.
Watching the way you all have come together since the launch of Paramount Global has been one of the highlights of my years with the company, and your accomplishments are evident across our business. Paramount+ is one of the fastest growing streaming services with great content that appeals to all ages. CBS has been the number one broadcast network for 16 years with clear strength across genres. Paramount Pictures continues to churn out hit after hit with eight number one movies in the past two years alone. Our linear networks have delivered culture-shaping content that excites audiences, including the launch of the “Taylor Sheridan Universe” on Yellowstone on Paramount Network. And Pluto TV is now the most widely distributed FAST service.
After all this was accomplished, we continued to work hard to educate and inform ourselves and our audiences in efforts to combat hate and discrimination, and to support other important work in the United States and around the world. We are so grateful to you for all we have accomplished to make a difference.
Our family has always been committed to carrying on my father’s legacy and ensuring the enduring success of Paramount. With that, as the pace of change in our industry continues to accelerate, it is our responsibility to consider both the short and long term and work with leadership to make changes that will keep us competitive and drive growth. Recently, George Cheeks, Chris McCarthy and Brian Robbins were appointed Co-CEOs and are taking the meaningful steps necessary to strengthen the company both operationally and financially. I think we can all agree that they have made significant contributions to this company. At the same time, as you know, the Board remains focused on pursuing all opportunities to best position the company for the future and maximize value creation for all shareholders.
“As a longtime production partner of Paramount, Skydance understands what the company has accomplished over the years, which is why it pursued an integration with Paramount. Skydance has a clear strategic vision for the future and the resources to leverage Paramount Global’s competitive advantages to drive the company’s success.”
The agreement signed today is subject to closing conditions and is expected to close in the first half of 2025. Until then, George, Chris and Brian will continue to lead the company and we will share more details soon. Of course, I am here to cheer you on and help you in any way I can. It has been a true honor to work alongside you all these years and see so many dreams come true.
I truly appreciate your dedication, hard work and most importantly, your support for me and my family. During a tough time in the industry and many changes to the company, you protected Paramount’s assets and delivered results for our audiences. I have said before, and I will always say, that Paramount has the best people in the industry and it has been a true honor to work alongside you. I will always cherish our relationship and the way we have worked together to stand out in the industry.
Best of luck, Shari
Read the note from the current Paramount Global Co-CEOs.
Hey, guys,
“Today marks an important milestone for Paramount as we just announced a definitive agreement with Skydance Media. The combination of Skydance and Paramount will build on our historic heritage and create an even stronger next-generation media and technology leader positioned to compete in today’s rapidly changing media landscape.
As Shari noted, the transaction is subject to regulatory approvals and other steps necessary to close, so we expect it to close in the first half of 2025. The agreement also contains what’s known as a “go-shop” provision, which allows a special committee of Paramount’s board of directors and its representatives 45 days to actively solicit and evaluate alternative acquisition proposals.
Until the transaction closes, it will be business as usual. We will continue to operate as an independent company and move forward with the strategic plan we outlined in our Town Hall, which includes efforts to modernize our organization by streamlining our teams, eliminating redundant functions and reducing our employee count. We will also continue to explore opportunities to transform Global Streaming and optimize our asset mix by divesting certain assets.
We have been on a journey to transform Paramount for the future. Thanks to all of your efforts, Paramount brings tremendous value to this combination with Skydance. Paramount remains home to valuable IP and a vibrant creative culture that supports the best that entertainment has to offer to audiences around the world. And our assets are among the most desirable in the industry, including the #1 broadcast network in the U.S. with CBS; major free-to-air networks in the U.K., Australia, Argentina and Chile; iconic brands such as Nickelodeon, MTV, BET and Showtime; Paramount+, a top five SVOD service in the U.S.; and Pluto TV, the world’s leading free, ad-supported streaming service. And of course, Paramount Pictures continues to create genre-defying films that drive box office sales, most recently with A Quiet Place: Day One, the latest addition to our 100-year-old film library.
The transaction combines Skydance’s financial resources, extensive operating experience and cutting-edge technology with Paramount’s iconic intellectual property, extensive film and television library, proven hit production capabilities and linear and streaming platforms that reach millions of viewers. Additionally, we already know that Paramount, led by David Ellison, and Skydance can achieve great things together, as evidenced by their strong 15-year collaboration that has produced blockbuster films and series such as Top Gun: Maverick and Mission: Impossible – Fallout.
Paramount would not be where it is today without the leadership of Shari and the Redstone family. Their vision and support over the years have helped us become one of the leading global entertainment companies with the best team in the industry. We are extremely grateful to Shari and her entire family for their unwavering support and leadership, and we also want to thank our Board of Directors for guiding us along the way. We are grateful for all they have done for Paramount.
And most importantly, I want to thank the Paramount Global team for all the work they have done and continue to do to take Paramount to new heights.
We understand you have questions, and we’re committed to sharing as much information as we can throughout this process. In the meantime, for more details on this agreement, please see our press release here.
thank you,
George, Chris, Brian
