By Paramount has announced its merger with Skydance, effectively ending the decades-long influence of the Redstone family in Hollywood. This merger injects much-needed capital into a legacy studio that has struggled to adapt to the evolving entertainment landscape. The deal, valued at around $28 billion, is poised to close in September 2025, pending regulatory approval, with a consortium led by the Ellison family and RedBird Capital investing $8 billion.
David Ellison, the founder of Skydance and son of Oracle software company founder Larry Ellison, emerges as a significant new power player in Hollywood with this merger. His leadership is expected to bring a fresh vision and strategic direction to the combined entity. Skydance, based in Santa Monica, California, has been instrumental in producing major Paramount hits in recent years, including Tom Cruise films like “Top Gun: Maverick” and installments of the “Mission Impossible” series.
Shari Redstone’s National Amusements has controlled more than three-quarters of Paramount’s Class A voting shares through the estate of her late father, Sumner Redstone. Despite her efforts to maintain control over the company, which also owns CBS and is behind blockbuster films like “Top Gun” and “The Godfather,” Redstone agreed to a deal with Skydance just weeks after turning down a similar offer. Redstone commented on the decision, stating, “Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king.”
Founded in 2010 by David Ellison, Skydance quickly formed a production partnership with Paramount that same year. If the deal is approved, Ellison will become chairman and chief executive officer of what is being dubbed “New Paramount.” This merger is set to reshape Hollywood’s power dynamics, bringing fresh leadership and financial stability to Paramount while solidifying Skydance’s role as a major player in the industry. The entertainment world will be watching closely as this new chapter unfolds, anticipating how the combined strengths of Paramount and Skydance will influence the future of film and media production.
This historic merger marks the end of an era for the Redstone family, whose influence has been a defining force in Hollywood for decades. Shari Redstone’s decision to agree to the merger terms signals a strategic move to adapt to the rapidly changing entertainment landscape, ensuring that Paramount remains competitive and relevant in an industry that is constantly evolving. The influx of capital and the new leadership under David Ellison are expected to drive innovation and growth, positioning the new entity to better navigate the challenges and opportunities of the modern entertainment world.
