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What Skydance's acquisition of Paramount could mean for streaming race

Jun 04, 2024 - businessinsider.com
Skydance, backed by RedBird Capital Partners and KKR, is set to acquire media giant Paramount, which owns Paramount Pictures and CBS, in a deal valuing the company at $8 billion. The acquisition, which is expected to be announced soon, comes after a tumultuous period for Paramount, which saw company-wide layoffs, the departure of its CEO, and a drop in stock value. Despite these challenges, the company attracted interest from high-profile potential buyers, including Warner Bros. Discovery chief David Zaslav and media entrepreneur Byron Allen.

The deal will see Skydance CEO David Ellison, son of billionaire Oracle founder Larry Ellison, take control of Paramount. The acquisition is seen as a positive move for Hollywood, as Ellison intends to continue Paramount's production of movies and TV shows. However, the company's struggles with streaming, including a smaller audience and financial losses, remain a challenge for the new owner. The deal also raises questions about Paramount's future independence in the streaming market.

Key takeaways:

  • Media company Skydance, with help from RedBird Capital Partners and KKR, has secured the acquisition of Paramount, valuing the company at $8 billion.
  • Despite interest from high-profile suitors, Paramount has faced challenges including companywide layoffs, a CEO departure, and a stock decline of more than 11% on the year.
  • David Ellison, son of billionaire Oracle founder Larry Ellison and CEO of Skydance, plans to continue Paramount's production of movies and TV shows.
  • Paramount's biggest challenge in streaming is its subscale audience, a problem that may not be easily fixed by the new owner.
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