'Terminator' Skydance Finally Acquired by Paramount for $2.4 Billion

Hollywood production company Skydance is acquiring the major U.S. media corporation Paramount Global.

On the 7th (local time), according to Bloomberg News, Shari Redstone, chairwoman of Paramount, agreed to sell National Amusements, the family company holding about 77% of Paramount's voting shares, for $2.4 billion (approximately 3.3211 trillion KRW).

[Image source=Reuters Yonhap News]

The mood shifted after talks between David Ellison, film producer and son of Oracle co-founder Larry Ellison, and Redstone broke down last month. At that time, there were even reports that negotiations between Skydance and National Amusements were only awaiting signatures, but the sudden collapse of talks caused Paramount's stock price to plunge.

In April, Bob Bakish, Paramount's CEO, was dismissed for opposing the merger with Skydance. Paramount is currently governed by a management committee composed of three senior executives.

The CEO of the merged entity will be Ellison. The New York Times (NYT) evaluated that this deal will create a new giant in Hollywood. According to foreign media, the merged company's value reaches $28 billion.

The merger process is expected to be completed in the first half of next year.

Paramount is a major media group owning CBS broadcasting in the U.S., cable channel MTV, and film studio Paramount Pictures. It is well known for films such as The Godfather and Breakfast at Tiffany's. However, with the rise of online video services (OTT) like Netflix leading to a decline in cable viewers, Paramount has faced difficulties due to massive debt burdens and costs of expanding its streaming business. It recorded a net loss of $554 million in the first quarter.

Skydance is a famous Hollywood production company behind films such as Terminator, Mission: Impossible, and Top Gun: Maverick.

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