Entertainment giant Paramount agrees to a merger with Skydance

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The new combined company is valued at around $28 billion.

The entertainment giant Paramount will merge with Skydance.

Shari Redstone's National Amusements has owned more than three-quarters of Paramount's Class A voting shares though the estate of her late father, Sumner Redstone. She had battled to maintain control of the company that owns CBS, which is behind blockbuster films such as "Top Gun" and "The Godfather."

Skydance was founded in 2010 by David Ellison and it quickly formed a production partnership with Paramount that same year. Ellison, if the deal is approved by U.S. regulators, will become chairman and chief executive officer of what's being called New Paramount. Paramount, however, has struggled to find its footing for years and its cable business has been hemorrhaging. To capture today's growing streaming audience, the company launched Paramount+ back in 2021, but losses and debts have continue to grow.

 

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