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    Skydance Reaches Deal to Merge With Paramount

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    The deal, approved by Paramount’s board, ushers in a new chapter for the company, which owns CBS and the movie studio behind “Top Gun.”Paramount’s board on Sunday signed off on a deal to merge with Skydance, according to two people familiar with the negotiations, ushering in a new era for CBS, Nickelodeon and the film studio behind the “Top Gun” and “Mission: Impossible” franchises.The deal is a turning point for the Redstone family, whose fortunes have been intertwined with the rise and fall of the traditional entertainment industry during the decades of its tumultuous ownership of Paramount and its predecessors. Ms. Redstone, Paramount’s board chair, is cashing in much of her ownership in the company she fought to preserve and control.The merger will anoint a new mogul in Hollywood. David Ellison, the tech scion behind Skydance, will become the top power broker at Paramount. The deal is in some ways the story of media writ large, with a family that made its fortune in traditional entertainment largely replaced by one enriched by technology — Mr. Ellison is the son of the Oracle founder Larry Ellison. The Ellisons’ considerable resources was a major selling point for the Redstones, who were seeking to fortify Paramount for the long-term.In recent years, Paramount has become the poster child of a traditional media industry that has been limping along in the shadows of the streaming giant Netflix and tech companies like Amazon, which have plenty of cash to spend on their media bets. Paramount has tried to replace its fading cable TV enterprise with streaming businesses like Paramount+, but those efforts are still nowhere near as profitable as traditional TV operations.The full value of the merger was not immediately clear because the deal is complex. Skydance and its financial backers will acquire National Amusements, the company that holds the Redstone family’s voting stock in Paramount, for roughly $1.75 billion. Paramount is also merging with Skydance, leaving the studio and its backers in charge of a media empire that includes film, TV and news properties.Paramount’s market capitalization — the value the stock market places on the company — is around $8.2 billion. Skydance’s last disclosed valuation was north of $4 billion.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Paramount Chief Executive Bob Bakish Could Be Out Next Week

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      He was once a staunch ally of the company’s biggest owner, Shari Redstone, but the relationship soured in recent months.Paramount is preparing to announce the departure of its chief executive, Bob Bakish, as soon as next week, according to three people with knowledge of the matter, a sudden development even as the company is exploring a merger.The impending move is a result of Mr. Bakish’s worsening relationship with Shari Redstone, the company’s controlling shareholder, the people said, asking not to be identified discussing a delicate matter. Ms. Redstone grew frustrated with what she saw as his inability to get important deals across the finish line, including a sale of the Showtime and BET cable channels, the people said.Two people familiar with the matter said several of Paramount’s senior executives had expressed reservations about the direction of the company to a representative of the board of directors in recent weeks, further eroding Mr. Bakish’s standing with Ms. Redstone.The company is in talks to merge with Skydance, a media company controlled by David Ellison, the tech scion and Hollywood producer. It is also negotiating a lucrative deal to keep channels like Nickelodeon and MTV on the Charter cable system.National Amusements, Paramount’s owner, is contemplating various options to replace Mr. Bakish, 60, who has led Paramount and its predecessor company, Viacom, since 2016 and has worked at the company since 1997. In one possibility, Paramount would be run by an “office of the C.E.O.” led by division chiefs like Brian Robbins, the head of the Paramount movie studio; George Cheeks, the top executive of CBS; and Chris McCarthy, president of Paramount’s entertainment and youth brands. The company could also choose to put an acting chief executive in place.Paramount declined to comment. The Wall Street Journal earlier reported that Paramount’s board was considering replacing Mr. Bakish.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Deal Talks Between Paramount and Skydance Heat Up

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      David Ellison, the founder of the Skydance media company, met with Paramount’s board of directors late last month to discuss the deal.Shari Redstone is getting one step closer to selling her media empire.Paramount, home to one of Hollywood’s most storied movie studios as well as CBS and cable networks like Nickelodeon, has been discussing entering into exclusive talks with the media company Skydance for a potential deal, according to four people with knowledge of the discussions. Moving to exclusive talks would be a significant step forward in a process that has been shrouded in uncertainty for months.Whether the two sides will agree to exclusivity remains to be seen, especially with other investors still pursuing Paramount. Apollo Global Management, an investment firm with more than $500 billion under management, has submitted an $11 billion offer to acquire the Paramount movie studio. Paramount’s board of directors, though, is seeking a deal for the entire company — including its cable channels and CBS — rather than pieces.Apollo continues to evaluate what proposal might most appeal to the company’s board, two people familiar with the situation said. Byron Allen, whose Entertainment Studios owns the Weather Channel, has also expressed interest in acquiring Paramount.Ms. Redstone, the controlling shareholder of Paramount, began negotiating with Skydance to sell her stake in the company last year. She controls Paramount through National Amusements, a holding company that owns her voting stock in Paramount. Ms. Redstone has held off on a sale for years, betting that the company’s fortunes would improve as its flagship streaming service, Paramount+, gained momentum.The terms of the deal being discussed would involve Skydance’s buying National Amusements and merging with Paramount. That deal hinges on approval from Paramount’s board, which has for weeks been weighing its options with the help of advisers.Late last month, David Ellison, the tech scion who founded Skydance, met with Paramount’s board committee to discuss his vision for a deal, according to two of the people familiar with the talks. Founded in 2010, Skydance is best known for shepherding blockbusters for Paramount, including movies in the “Mission: Impossible” and “Top Gun” franchises.Representatives for Paramount and Skydance declined to comment, and the financial terms of the deal couldn’t be learned.Paramount’s stock has fallen 18 percent since the start of the year amid headwinds for the media industry. The company is trading at a steep discount to the combined value of Viacom and CBS, which merged to form Paramount in 2019. Paramount+ is still losing money, but its losses have slowed and it continues to add subscribers.The ratings agency S&P Global downgraded Paramount’s debt to junk last week, citing “accelerating declines” in its traditional television business and continued uncertainty in its push toward streaming. Some analysts said that ratings action might make Paramount easier to acquire, since it could circumnavigate a provision that would require a buyer to immediately pay the company’s debt. More