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Paramount announces $28B US merger with Skydance, a new era for famed Hollywood studio

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The main gate to Paramount Studios is seen on Melrose Avenue, July 8, 2015, in Los Angeles.

Entertainment giant Paramount will merge with production company Skydance, closing out a decades-long run by the Redstone family in Hollywood and injecting desperately needed cash into a legacy studio that has struggled to adapt to a shifting entertainment landscape.The main gate to Paramount Studios is seen on Melrose Avenue in Los Angeles, on July 8, 2015. Entertainment giant Paramount will merge with production company Skydance.

Shari Redstone's National Amusements has owned more than three-quarters of Paramount's Class A voting shares through the estate of her late father, Sumner Redstone. She had battled to maintain control of the company behind blockbuster films such asJust weeks after turning down a similar agreement with Skydance, however, Redstone agreed to a deal on terms that had not changed much.

Leadership at Paramount has been volatile this year after its CEO Bob Bakish, following a number of disputes with Redstone, was replaced with an "office of the CEO," run by three executives. Four company directors were also replaced. Under Sumner Redstone's leadership, Viacom became one of the nation's media titans, home to pay-TV channels MTV and Comedy Central and movie studio Paramount Pictures.

 

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