The Memo: Paramount and Skydance's $28bn merger

Two major players in Hollywood are taking their recurring partnership to the next, more permanent, level. By September 2025, pending regulatory approval, media heavyweights Paramount and Skydance will merge and place the latter’s founder, David Ellison, on the unified throne as chairman and chief executive of what will be known as New Paramount. The two companies have worked together for years on hits like Top Gun: Maverick and Mission Impossible, but now they’re finally ready to tie the proverbial corporate knot.  

Paramount had been entertaining offers for a merger for some time, facing mounting costs thanks to its languishing cable TV networks and streaming service that struggled to find broad appeal to a more varied audience. On top of this, the company’s footprint in feature film distribution has significantly dwindled year on year compared to its 20th century heyday as one of the era's seminal film companies.  

Ellison and Skydance are looking to bring a more forward-thinking approach to a company that has at times struggled to successfully adapt to an ever-changing media landscape, at least when compared to its competitors. In particular, Ellison is looking to enhance the brand with more tech, bolstering its viability in the space. Ellison has also discussed plans to overhaul Paramount’s aforementioned streaming platform, Paramount+, while utilising artificial intelligence as part of the company’s operations. Once the two entities become one, New Paramount will be estimated to be worth $28 billion.