LOS ANGELES, – Paramount Global (PARA.O) announced Friday it expects to finalize its $8.4 billion merger with Skydance Media by August 7, having received necessary government approvals. The combined entity will operate as Paramount Skydance Corp, with Class B shares trading under the ticker “PSKY.” The deal concludes a year-long negotiation process that will see Skydance CEO David Ellison take the helm of the storied Hollywood studio, inheriting challenges including the struggling Paramount+ streaming service, declining linear TV assets, and questions about content spending priorities.
The merger unites Paramount’s iconic film library – including classics like “The Godfather” and “Titanic” – with Skydance’s blockbuster franchises such as “Top Gun: Maverick.” Ellison, who previously identified $2 billion in potential cost savings, plans to overhaul Paramount’s technology infrastructure and streaming strategy. The Federal Communications Commission approved the deal Thursday in a contentious 2-1 vote, coming just weeks after Paramount settled a $16 million lawsuit with former President Donald Trump over CBS’s editing of a Kamala Harris interview. The timing raised eyebrows, with the dissenting FCC commissioner calling the settlement a “cowardly capitulation” to political pressure.
The transaction marks the end of the Redstone family’s three-decade control of Paramount, with Shari Redstone relinquishing the media empire her father Sumner built. As part of FCC requirements, Skydance agreed to establish an ombudsman for CBS editorial complaints and roll back certain diversity initiatives Trump had challenged. Analysts warn the real work begins post-merger, with MoffettNathanson’s Robert Fishman noting Skydance must now “rebuild Paramount” and chart “a path toward a more sustainable future” in an increasingly competitive media landscape. The deal’s closure sets the stage for one of Hollywood’s most significant transformations in recent years.