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Paramount Global’s controlling shareholder Shari Redstone and the conglomerate’s troika of co-CEOs waved pom-poms to staffers Sunday night about the benefits of Skydance’s $8 billion acquisition of the famed studio, CBS and Viacom cable networks.
Employees are already fretting over the $500 million in budget cuts that co-CEOs George Cheeks, Chris McCarthy and Brian Robbins are reportedly considering to improve profit margins. And now it’s Skydance’s turn to sign a deal tonight.
As we saw with the Warner Bros. Discovery merger, with new leadership comes new agendas, new mission statements and future management teams. Something new bosses often fail to realize — especially when Paramount’s film arm has built a slate of quality features. A Quiet Place: Day 1, Transformers 1, Smile 2 And Gladiator II This year, if it ain’t broke, don’t fix it. Much of Paramount’s struggles stem from the high overhead of running a streaming service, coupled with a challenging linear network space.
Skydance Media’s David Ellison will be the new CEO of the new conglomerate, with former NBCUniversal executive Jeff Shell serving as chairman once the transaction clears the regulatory process in early 2025.
Redstone praised Skydance in tonight’s memo, saying in part, “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.” Skydance has been a major co-financier of Paramount’s mega-tents Top Gun: Maverick, Star Trek and the Impossible mission franchise.
She also thanked employees for building the entertainment company her father Sumner Redstone started, one in which content is king. “That has never been more important than it is today, as we continue to create content in a crowded marketplace that resonates with our consumers, keeps them searching for it, and keeps them wanting more,” she told employees in the memo.
“Our success is due to you, to what you have done individually and, more importantly, as a team,” she stressed.
Despite the 45-day negotiation period, it appears Redstone has decided that Paramount Global is the Skydance loser: “The deal we have entered into today is subject to closing conditions, and we expect the transaction to close in the first half of 2025.”
Read Redstone’s memo to Paramount Global employees below:
Good evening. Moments ago, we announced that we had entered into an agreement for Skydance Media to acquire National Amusements and merge Skydance’s operations with Paramount Global. I wanted to take this opportunity to reach out to you directly, not only to share the news, but also to express my deep gratitude to each of you for what we have been able to accomplish together over the past few decades.
As you know, my father founded Viacom and CBS by bringing together a group of the best in media, news and entertainment. While people often debated whether content or distribution was king, my father was guided in every decision he made by his belief that content was king. That has never been more important than it is today, as in a crowded marketplace, we continue to create content that resonates with our consumers, keeps them searching for it, and keeps them wanting more. Our success is due to you, what you did individually, and most importantly, your teamwork.
Seeing how you’ve worked together since launching Paramount Global has been one of the highlights of my time at this company, and your accomplishments are evident across the company. Paramount+ is one of the fastest-growing streaming services, with an exceptional slate of compelling content for every demographic. CBS has been the #1 broadcast network for 16 years and is a clear standout in every genre. Paramount Pictures has produced eight #1 films in the last two years alone and continues to create hit after hit. Our linear networks have delivered culture-shaping content that excites audiences, including the launch of “The Universe of Taylor Sheridan” with Yellowstone on the Paramount Network. And Pluto TV is now the most widely distributed FAST service.
Throughout these efforts, we have continued to educate ourselves and our audiences as part of our efforts to combat hate and discrimination, and to support other important causes in the United States and around the world. I am so grateful for what we have been able to accomplish to make a difference.
Our family has always been committed to continuing my father’s legacy and ensuring the continued success of Paramount. In this environment, as the pace of change in the industry continues to accelerate, it is our responsibility to work with management to make changes to maintain our competitive position and fuel growth, thinking both short and long term. Most recently, this has led to the appointment of George Cheeks, Chris McCarthy and Brian Robbins as Co-CEOs, to take the significant steps needed to strengthen the Company, both operationally and financially. I think we can all agree on their enormous contribution to this business. At the same time, as you know, our Board of Directors has been focused on ensuring that we take every opportunity to better position the Company for the future and maximize value creation for all shareholders.
As a long-time production partner of Paramount, Skydance is keenly aware of what we have accomplished over the years and that is why they sought a merger with Paramount. They have a clear strategic vision for the future and the resources to leverage Paramount Global’s competitive advantages to ensure the company’s success.
The deal we have entered into today is subject to closing conditions and we expect the transaction to close in the first half of 2025. In the meantime, George, Chris and Brian will continue to lead the company and will share more with you shortly. Of course, I will also be here to encourage and assist you in any way I can. It has been a true honor to work with you all over the past few years and see so many of our dreams come to fruition.
I want to express my sincere thanks for your commitment, hard work, and most importantly, your support for my family and me. In a challenging industry environment and with many changes within the company, you have protected Paramount’s assets and delivered results for our audiences. As I have said before, and will always say, we have the best people in the business here at Paramount and it is truly a privilege to work with you. I will always cherish the relationships I have had with you and how we have worked together to distinguish ourselves in our industry.
Best wishes, Shari