Paramount And Skydance Have Officially Merged
Image Source: Moviefone
In the latest merger, Paramount is combining with Skydance with David Ellison replacing the Redstone family as the head of operations. The merger will likely come with the usual layoffs as the company seeks to implement cost efficiencies to the tune of $2 billion. The newly merged company is simply called New Paramount.
Sumner Redstone, the current Paramount CEO, addressed the deal in a public statement, “Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment. She added, “Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king.” The changes in the industry refer to entertainment companies figuring out how to make streaming profitable. Proper residuals for streaming services were a large part of the historic Hollywood strikes last year.
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For his part, Elison affirmed the content-first approach but stressed the need for New Paramount to become a tech hybrid company. He said, “You’ve watched some incredibly powerful technology companies move into the… media space and do so very successfully.”
Image Source: Les Echoes
Paramount’s umbrella includes CBS, Comedy Central, Nickelodeon, and MTV, meaning all these companies will be part of the merger. Elison expects the merge to be finalized by the end of next summer.
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Source(s): Associated Press, BBC
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