The rollercoaster ride that has been the saga of storied entertainment brand Paramount’s prospective sale has come to a conclusion, with the news that the on again-off again merger deal with Skydance Media has finally cleared.

Late on Sunday (July 7), Paramount Global and Skydance announced the terms of the deal: a “two-step transaction” that will see Skydance acquire Paramount Global’s controlling stakeholder, National Amusements, for US$2.4 billion on a cash-free, debt-free basis, followed by Skydance’s merger with Paramount.

That part of the deal will see $4.5 billion in cash and stocks paid to shareholders, and an additional $1.5 billion added to Paramount’s balance sheet.

The deal received approval from Paramount Global’s special committee of its board of directors earlier on Sunday, with National Amusements president Shari Redstone — who had reportedly pulled out of an on-the-table deal with Skydance last month — now on board.

With all of the puzzle pieces now in order, the next steps include a 45-day “go-shop” period, in which the board is free to actively court and entertain other acquisition options. Barring anything happening on that front, the path will be cleared for the formation of what is being dubbed New Paramount, to be led by Skydance chief David Ellison as CEO and Jeff Shell — former CEO of NBCUniversal and currently chairman of RedBird Sports & Media — as president.

Following the ouster of former Paramount Global topper Bob Bakish in late April, the firm had been led by an “office of the CEO” composed of George Cheeks, president and CEO of CBS; Chris McCarthy, president and CEO, Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, president and CEO of Paramount Pictures and Nickelodeon. On a call Monday morning (July 8) with investors concerning the new deal featuring Ellison, Shell, and the current Paramount Global leadership triumvirate, it was revealed that the current leadership will remain intact for the time being, with the deal expected to close by Sept. 30, 2025.

The call also highlighted the new team’s drive towards profitability for its direct-to-consumer sector (which includes Paramount+), with further exploration of partnerships; the need to “transition New Paramount to a world-class media and technology enterprise”; and the push to “prioritize cash-flow generation” through the restructuring of the business. According to Monday morning’s investor presentation, $2 billion has already been identified in terms of cost efficiencies, with reports indicating that those could include the offloading of various assets, including cable net BET.

The presentation did also point towards a plan to “restructure and elevate linear brands: MTV, Comedy Central [and] Nick” — or Nickelodeon. What that means specifically remains to be seen.

Paramount Global plays a notable role in the streaming landscape in Canada, with subscription-based platform Paramount+ and ad-supported Pluto TV. Paramount+ debuted domestically on March 4, 2021, following its rebrand from CBS All Access, while Pluto TV launched in Canada on Dec. 1, 2022.

Paramount+’s role as a content commissioner in Canada came into question in April when its head of original programming, Tom Hastings, was let go and the streamer was no longer accepting pitches.

The SVOD has also formed a number of partnerships in Canada over the years, including with BIPOC TV & Film, the Indigenous Screen Office and the Banff World Media Festival.

At press time, Wall Street seems to be in “wait and see” mode concerning the deal. While shares for Paramount Global had an uptick immediately following the news, they are sliding downward again following the market open.

“In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global,” said Sheri Redstone in a statement. “He had a vision that ‘content was king’ and was always committed to delivering great content for all audiences around the world. That vision has remained at the core of Paramount’s success and our accomplishments are a direct result of the incredibly talented, creative, and dedicated individuals who work at the company.

“Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king,” she continued. “Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment. As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”

“This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy,” offered Skydance’s Ellison. “I am incredibly grateful to Shari Redstone and her family, who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”

A version of this story originally appeared in Realscreen

Photo by Michael M. Santiago/Getty Images