The combined company was referred to as “New Paramount” in a news release from Skydance, which was founded by Larry Ellison’s son David Ellison in 2010. Shari Redstone’s National Amusements owns the vast majority of voting shares of Paramount and agreed to the terms of the deal.
The merger was framed as a way to preserve Paramount’s century-old legacy in Hollywood and CBS’s place in the entertainment world. The merger includes a 45-day period in which Paramount’s board is allowed to search for a better deal. Paramount has struggled in recent years as the traditional cable model of watching TV and movies has fallen in stature in response to a raft of new streaming services, such as Netflix, Hulu, and Max. Paramount launched its own such platform in 2021, Paramount+, but has nevertheless struggled.