Paramount Global controlling shareholder Shari Redstone, together with the conglom’s co-CEO troika, waved poms poms tonight to employees concerning the upside to Skydance’s $8 billion takeover of the storied studio, CBS community and Viacom cable networks.
Already, workers are sweating over the looming $500 million in cuts that co-CEOs George Cheeks, Chris McCarthy and Brian Robbins would usher in an effort to create higher revenue margins. Now, information of tonight’s Skydance deal.
As we noticed with the Warner Bros Discovery merger, the arrival of recent execs include their very own agendas of recent mission statements and future exec groups. What’s usually not realized by incoming bosses –particularly because the Movement Image aspect of Paramount has constructed a kickass characteristic slate of A Quiet Place: Day One, Transformers One, Smile 2 and Gladiator II this yr — is that if it ain’t broke, properly then, don’t repair it. A lot of Paramount’s pains are the lofty overhead of working a streaming service, coupled with the challenged linear community area.
Skydance Media‘s David Ellison would be the new Chairman and CEO of the brand new conglom with former NBCUniversal chief Jeff Shell performing as president after the transaction passes the regulatory course of in early 2025.
Redstone praised Skydance in tonight’s memo: “They’ve a transparent strategic imaginative and prescient for the longer term and the sources to construct on Paramount International’s aggressive benefits to drive the Firm’s success.” Skydance has been a giant co-financier to Paramount’s mega tentpoles Prime Gun: Maverick, Star Trek and the Mission: Unattainable franchise.
She additionally thanked employees for build up the leisure firm her father Sumner Redstone created, one wherein content material is king. “That has by no means been extra vital than it’s at present, when in a cluttered market, we proceed to create content material that resonates with our customers, that they frequently search out, and that retains them wanting extra,” she informed workers within the notice.
“Our success is due to you, what you will have performed individually, and much more importantly, as a crew,” she emphasised.
Regardless of the 45-day go-shop interval, it appears like Redstone has made up her thoughts that Paramount International is Skydance’s to lose: “The settlement we entered into at present is topic to closing situations, and we count on the deal to be accomplished within the first half of 2025.”
Learn Redstone’s notice to Paramount International workers beneath:
Good night. Simply moments in the past, it was introduced that we’ve got entered into an settlement beneath which Skydance Media will purchase Nationwide Amusements and merge Skydance’s enterprise with Paramount International. I wished to take this chance to achieve out to you straight not solely to share the information, however to precise my large gratitude to every certainly one of you for what we’ve got been in a position to accomplish collectively for the previous a number of many years.
As , my father constructed Viacom and CBS by bringing collectively a bunch of one of the best property in media, information, and leisure. Whereas individuals usually debated whether or not content material or distribution dominated the day, my father was ruled in all of his choices by his perception that content material was certainly king. That has by no means been extra vital than it’s at present, when in a cluttered market, we proceed to create content material that resonates with our customers, that they frequently search out, and that retains them wanting extra. Our success is due to you, what you will have performed individually, and much more importantly, as a crew.
Seeing the best way you will have come collectively since we launched Paramount International has been one of many highlights of my years at this firm, and your accomplishments are evident throughout the enterprise. Paramount+ is among the many fastest-growing streaming companies with an distinctive vary of content material interesting to all demographics. CBS has been the #1 broadcast community for 16 years and working, with clear power throughout genres. Paramount Footage has produced eight #1 films prior to now two years alone and continues to create hit after hit. Our linear networks have delivered culture-shaping content material that excites audiences, together with the launch of the “Taylor Sheridan universe” with Yellowstone on the Paramount Community. And, Pluto TV is at present essentially the most extensively distributed FAST service.
As all this was completed, we remained devoted to educating and informing ourselves and our audiences in our efforts to struggle hate and discrimination, and supporting different vital causes within the US and around the globe. I’m so grateful to all of you for what we’ve got been in a position to accomplish to make a distinction.
Our household has all the time been dedicated to persevering with my Dad’s legacy and guaranteeing Paramount’s enduring success. In step with that, because the tempo of change within the business has continued to speed up, it has been our accountability to work with management to make adjustments with a purpose to preserve our aggressive place and gasoline development, pondering of each the close to and long term. Most just lately, this led to the appointment of George Cheeks, Chris McCarthy, and Brian Robbins as Co-CEOs, to take the significant actions essential to bolster the Firm each operationally and financially. I feel we are able to all agree on their huge contributions to this firm. On the similar time, as , our Board has centered on guaranteeing we’re pursuing all alternatives to finest place the Firm for the longer term and maximize worth creation for all shareholders.
As a longtime manufacturing associate to Paramount, Skydance is properly conscious of what we’ve got completed through the years and it’s for that purpose that they’ve pursued a mix with Paramount. They’ve a transparent strategic imaginative and prescient for the longer term and the sources to construct on Paramount International’s aggressive benefits to drive the Firm’s success.
The settlement we entered into at present is topic to closing situations, and we count on the deal to be accomplished within the first half of 2025. Till then, George, Chris, and Brian will proceed to steer the Firm, and they are going to be sharing extra with you shortly. I in fact may even be right here to cheer you on, and help in any approach that I can. It has really been my honor to work with all of you these previous a number of years, and to see so lots of our goals come to fruition.
I need to specific my deepest due to you to your dedication, exhausting work, and most significantly your help of my household and me. In opposition to a difficult business backdrop and plenty of adjustments on the firm, you will have protected Paramount’s property and delivered for our audiences. As I’ve mentioned earlier than, and I’ll all the time say, we’ve got one of the best individuals within the enterprise right here at Paramount and it’s really a privilege to work with you. I’ll all the time treasure the relationships I’ve had with you and the methods we’ve got labored collectively to tell apart ourselves in our business.
All one of the best, Shari
