The Redstone Era concludes for Paramount and CBS, marked by minimal celebration and reduced assets (as reported in a column).
In a significant move that shook the media and entertainment industry, Paramount Global, a conglomerate boasting assets such as Paramount Pictures, CBS, MTV, and Nickelodeon, merged with Skydance Media in a deal valued at approximately $8 billion. The merger, announced in July 2024 and completed in August 2025, formed a new entity called Paramount, a Skydance Corporation, with an estimated worth of around $28 billion.
Historically, Paramount Global faced financial challenges due to mounting debt, declining cable revenues, streaming losses, and executive turnover. These issues prompted National Amusements (Paramount’s parent company) to explore sale or merger options with multiple buyers, including Skydance. Initial merger talks between the two parties fell apart in June 2024 but were renegotiated and finalized by early July 2024.
The merger combined Skydance's strong production capabilities and technological innovation with Paramount's extensive content library and global distribution. Despite Skydance’s operational leadership, legacy Paramount divisions like CBS, Nickelodeon, MTV, and Paramount Pictures remain central to the new business structure. The merger was subject to regulatory approval, which was granted in July 2025 after certain conditions, including changes to diversity and editorial policies at Paramount.
CBS, as a key Paramount division, experienced operational changes linked to the overall company restructuring. Paramount announced significant cost-cutting measures in 2024, including a 15% reduction in U.S. workforce (~2,000 jobs) and shutting down Paramount Television Studios, reflecting efforts to streamline and reduce losses. While CBS continues to operate under the new Paramount, its ongoing strategies and content may be influenced by Skydance’s focus on technology-driven content creation and efficiency.
The new leadership under David Ellison, CEO of Skydance, aims to innovate in content creation while stabilizing the business for long-term success. The Ellison family owns about 70% of the equity in the newly minted Paramount Skydance, and they control 100% of the voting power.
The sale of Paramount Global to David Ellison's Skydance Media brings a bookend to the decade that Shari Redstone spent cleaning up the mess made by her father in his waning years at the helm of his Viacom empire. Shari Redstone became significantly involved in the management of the company in the fall of 2015 due to her father's physical decline.
There is hope that the new "King of Content," David Ellison, will learn from the recent past of Paramount and CBS. Paramount suffered from neglect and a lack of vision due to internal drama, including scheming girlfriends, questionable business partners, lawyers, and consultants. Shari Redstone secured the ability to sell Paramount Pictures, CBS, Paramount+, MTV, Nickelodeon, and other legacy cablers to David Ellison's Skydance Media.
Leslie Moonves, former CBS CEO, opposed the reunification but was forced out in 2018 due to sexual harassment allegations. Sumner Redstone acquired CBS in 2000 and put it under the Viacom umbrella, but six years later, he decided Viacom and CBS should operate separately, albeit both under his firm control.
The sale of Paramount Global to Skydance Media was finalized on Aug. 7, and David Ellison, as the new owner, visited CBS News' operations on West 57th Street after the deal's closing. The Ellison family's resources will help CBS stand tall against legal battles, as Paramount Global wrote a $16 million check to settle a lawsuit against "60 Minutes" brought by President Trump.
Time Warner could have potentially acquired CBS in 2016, but instead sold itself to AT&T. The merger of Paramount and Skydance marks a new chapter for both companies, as they navigate the ever-changing landscape of the media and entertainment industry, which has been affected by macroeconomic changes. The new entity will aim to leverage the unique assets of both companies to create compelling content and remain competitive in the streaming era.
References:
- Paramount Global Merges with Skydance Media
- CBS Layoffs and Cost-Cutting Measures Announced
- Paramount, a Skydance Corporation: A New Era for Media and Entertainment
- Regulatory Approval Granted for Paramount, a Skydance Corporation
- Skydance CEO David Ellison Becomes Chairman and CEO of Paramount, a Skydance Corporation
- The merger of Paramount Global and Skydance Media has expanded the new entity's reach beyond media and entertainment, creating opportunities for growth in finance and business, with the potential to generate significant profits.
- Under the leadership of David Ellison, the newly formed Paramount, a Skydance Corporation, aims to diversify its assets not only in media and entertainment but also in industries such as technology and finance, making it a formidable competitor in the ever-evolving global marketplace.
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