Paramount World controlling shareholder Shari Redstone, together with the conglom’s co-CEO troika, waved pom-poms Sunday evening to employees in regards to the upside to Skydance’s $8 billion takeover of the storied studio, CBS community and Viacom cable networks.
Already, workers are sweating over the looming $500 million in cuts that co-CEOs George Cheeks, Chris McCarthy and Brian Robbins would herald an effort to create higher revenue margins. Now comes information of tonight’s Skydance deal.
As we noticed with the Warner Bros Discovery merger, the arrival of recent execs comes with new agendas, contemporary mission statements and future exec groups. What’s typically not realized by incoming bosses –particularly because the Movement Image aspect of Paramount has constructed a kickass characteristic slate of A Quiet Place: Day One, Transformers One, Smile 2 and Gladiator II this yr — is that if it ain’t broke, nicely then, don’t repair it. A lot of Paramount’s pains are the lofty overhead of working a streaming service, coupled with the challenged linear community house.
Skydance Media‘s David Ellison would be the new chairman and CEO of the brand new conglom, with former NBCUniversal chief Jeff Shell appearing as president after the transaction passes the regulatory course of in early 2025.
Redstone praised Skydance in tonight’s memo, saying partly, “They’ve a transparent strategic imaginative and prescient for the long run and the assets to construct on Paramount World’s aggressive benefits to drive the Firm’s success.” Skydance has been an enormous co-financier to Paramount’s mega-tentpoles Prime Gun: Maverick, Star Trek and the Mission: Inconceivable franchise.
She additionally thanked employees for increase the leisure firm her father Sumner Redstone created, one by which content material is king. “That has by no means been extra vital than it’s as we speak, when in a cluttered market, we proceed to create content material that resonates with our customers, that they frequently search out, and that retains them wanting extra,” she instructed workers within the be aware.
“Our success is due to you, what you may have achieved individually, and much more importantly, as a staff,” she emphasised.
Regardless of the 45-day go-shop interval, it appears like Redstone has made up her thoughts that Paramount World is Skydance’s to lose: “The settlement we entered into as we speak is topic to closing circumstances, and we count on the deal to be accomplished within the first half of 2025.”
Learn Redstone’s be aware to Paramount World workers beneath:
Good night. Simply moments in the past, it was introduced that we’ve got entered into an settlement beneath which Skydance Media will purchase Nationwide Amusements and merge Skydance’s enterprise with Paramount World. I wished to take this chance to achieve out to you immediately not solely to share the information, however to precise my super gratitude to each one in every of you for what we’ve got been capable of accomplish collectively for the previous a number of many years.
As , my father constructed Viacom and CBS by bringing collectively a gaggle of the perfect belongings in media, information, and leisure. Whereas individuals typically debated whether or not content material or distribution dominated the day, my father was ruled in all of his selections by his perception that content material was certainly king. That has by no means been extra vital than it’s as we speak, when in a cluttered market, we proceed to create content material that resonates with our customers, that they frequently search out, and that retains them wanting extra. Our success is due to you, what you may have achieved individually, and much more importantly, as a staff.
Seeing the way in which you may have come collectively since we launched Paramount World has been one of many highlights of my years at this firm, and your accomplishments are evident throughout the enterprise. Paramount+ is among the many fastest-growing streaming companies with an distinctive vary of content material interesting to all demographics. CBS has been the #1 broadcast community for 16 years and operating, with clear energy throughout genres. Paramount Footage has produced eight #1 motion pictures up to now two years alone and continues to create hit after hit. Our linear networks have delivered culture-shaping content material that excites audiences, together with the launch of the “Taylor Sheridan universe” with Yellowstone on the Paramount Community. And, Pluto TV is as we speak essentially the most extensively distributed FAST service.
As all this was achieved, we remained devoted to educating and informing ourselves and our audiences in our efforts to struggle hate and discrimination, and supporting different vital causes within the US and world wide. I’m so grateful to all of you for what we’ve got been capable of accomplish to make a distinction.
Our household has all the time been dedicated to persevering with my Dad’s legacy and making certain Paramount’s enduring success. In step with that, because the tempo of change within the trade has continued to speed up, it has been our accountability to work with management to make adjustments so as to keep our aggressive place and gas progress, considering of each the close to and long run. Most not too long ago, this led to the appointment of George Cheeks, Chris McCarthy, and Brian Robbins as Co-CEOs, to take the significant actions essential to bolster the Firm each operationally and financially. I believe we will all agree on their huge contributions to this firm. On the identical time, as , our Board has targeted on making certain we’re pursuing all alternatives to finest place the Firm for the long run and maximize worth creation for all shareholders.
As a longtime manufacturing associate to Paramount, Skydance is nicely conscious of what we’ve got achieved through the years and it’s for that purpose that they’ve pursued a mix with Paramount. They’ve a transparent strategic imaginative and prescient for the long run and the assets to construct on Paramount World’s aggressive benefits to drive the Firm’s success.
The settlement we entered into as we speak is topic to closing circumstances, and we count on the deal to be accomplished within the first half of 2025. Till then, George, Chris, and Brian will proceed to steer the Firm, and they are going to be sharing extra with you shortly. I in fact will even be right here to cheer you on, and help in any manner that I can. It has really been my honor to work with all of you these previous a number of years, and to see so lots of our desires come to fruition.
I wish to categorical my deepest because of you on your dedication, laborious work, and most significantly your help of my household and me. Towards a difficult trade backdrop and lots of adjustments on the firm, you may have protected Paramount’s belongings and delivered for our audiences. As I’ve stated earlier than, and I’ll all the time say, we’ve got the perfect individuals within the enterprise right here at Paramount and it’s really a privilege to work with you. I’ll all the time treasure the relationships I’ve had with you and the methods we’ve got labored collectively to differentiate ourselves in our trade.
All the perfect, Shari
