Paramount agrees Skydance merger in end to Redstone era

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Ellison family and US investment group RedBird to invest $8bn in group

Shari Redstone has agreed to sell Hollywood group Paramount to independent film studio Skydance in a deal that ends her family’s involvement in the company founded by her grandfather in 1936. The merger, which values the new company at $28bn, marks the close of a tumultuous eight-month process in which Redstone held discussions with a range of potential suitors including private equity group Apollo and Sony.

Both had hard-charging, demanding fathers — Sumner Redstone said more than once that his daughter would never run his company — and they both had a love for the Paramount studio lot on Melrose Avenue in Hollywood, according to people close to the executives. “I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount,” said Ellison, who will become chief executive and chair of the group.

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