Paramount Global chair and controlling shareholder Shari Redstone has just thanked investors and her company’s co-CEOs. She recalled her father, the late Sumner Redstone, who grew Par into a media powerhouse, as the company prepared to merge with Skydance next week. And, as the Aug. 7 closing date for the merger approaches, said she believes the David Ellison company will be a good steward of the assets.
“I believe I can take it on faith that many on this call understand the enormous importance of this business to my family and to me. Beginning nearly 40 years ago, my father, Sumner Redstone, built Viacom and CBS by bringing together a group of the best assets in media, news and entertainment. While people often debated whether content or distribution ruled the day, my father’s steadfast belief was that content was king. Even against the backdrop of enormous change, that core business philosophy remains the reality for our business and industry,” she said on a call after the company’s last earnings report in its current configuration.
“That is a reality that Skydance surely understands. I am confident that with their vision for the business and the technology and resources they can bring to bear, they can build on Paramount legacy and position it for long term success.”
Ticking off Paramount’s accomplishments, she said she is “particularly proud [of] programming that informs and educates audiences about the issues we face as a society and around the world. This is also the reason CBS has been the number one broadcast network for 17 years in a row, due also to its range of entertainment, sports and news programming, and in cable the company has delivered the number one scripted series, number one reality series, number one late night show and number one kids show.”
Paramount’s earnings release gave a shoutout to Jon Stewart and The Daily Show on Monday. The Late Show with Stephen Colbert, however, is being shuttered after next season. CBS News was rattled after Paramount settled a dubious lawsuit against 60 Minutes by President Donald Trump for $16 million. And FCC Commissioner Brendan Carr’s statements approving the deal slammed the national news media and said Skydance has agreed to root out bias.
It was a pared down affair hosted by co-CEO Chris McCartly and interim CFO Andrew Warren with no Q&A.
Redstone’s controlling interest in Paramount sits within her family holding company NAI, which the Ellison investor group, which includes Gerry Cardinale’s RedBird Capital, is acquiring for $2.4 billion as a first step in the transaction. Redstone owns Class A shares, which hold voting rights. Most other shareholders have Class B shares, which don’t.
The deal calls for Paramount to acquire Skydance in an all-stock merger that values the Ellison company at $4.75 billion.
Skydance is offering up to $4.5 billion in cash to take out A and B shares for, respectively, $15 and $23. Beyond that amount, shares in Old Paramount will be swapped for shares in New Paramount.
At the close, the Skydance investor group will own 100% of New Paramount Class A Shares and 69% of outstanding Class B shares.
Redstone will be cashed out of Paramount, but there may be some lingering blowback. Investors have questioned what they call a lack of transparency around her $2.4 billion payout and some, like Mario Gabelli haven’t ruled out the possibility of suing after the deal closes to get that information
Sumner Redstone’s empire started with his father’s drive-in theater in a Boston suburb in 1934 that grew into the National Amusements chain, later acquiring Viacom, Paramount and CBS among other deals. Viacom and CBS merged then split then merged for the last time in 2019. Paramount shares have been pummeled with much of traditional media by a decline in linear television, which makes up the bulk of the company’s revenue.
The current iteration of Paramount+ launched in 2021.
Shari Redstone began shopping the company in late 2024. She has been a philanthropic supporter of Jewish causes, especially fighting antisemitism. She revealed last month that she was undergoing treatment for thyroid cancer.
