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Paramount, Skydance merger deal ends Redstone era

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Skydance Media and Paramount Global agreed to merge, the companies announced late Sunday evening, opening a new chapter for one of Hollywood’s oldest studios.

Shari Redstone, Paramount’s non-executive chair, will sell the family’s controlling stake in the company in a complex transaction that will culminate in a merger. The deal represents the end of an era for the Redstones, whose late patriarch, Sumner Redstone, transformed the family’s chain of drive-in movie theaters into a media empire that included Paramount Pictures, the CBS broadcast network and cable television networks Comedy Central, Nickelodeon and MTV.

Ellison will likely be joined at Paramount by veteran media executive Jeff Shell, former chief executive of NBCUniversal, once the deal closes, according to two people familiar with the discussions. Shell left NBCU last year after an investigation into an inappropriate relationship and subsequently joined RedBird as its chair of sports and media. The Paramount-Skydance deal culminated months of talks that appeared to have derailed when Redstone abruptly called off negotiations on June 11.

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