Paramount Global and Skydance Media Merger Approved
The US government has approved the $8 billion merger between Paramount Global and Skydance Media, which is expected to be closed on August 7. This decision comes after a thorough review process by the Federal Communications Commission (FCC).
Details of the Merger
Paramount Global has outlined the terms of the merger, including the options for global shareholders to decide how they would like to be paid for their regular shares. The company has announced that the shares of Class B of "New Paramount" will start trading on the Nasdaq stock market after the completion of the merger. However, the shares of Class B’s ordinary shares of Paramount and Class A regular shares will no longer be listed for retail after the closure.
Leadership Changes
The merger is expected to bring significant changes to the leadership of Paramount Global. Chris McCarthy, one of the three co-CEOs of Paramount Global, will be leaving the company after the completion of the merger. There are also reports that Brian Robbins, who heads the studio business, will be leaving the company. David Ellison, the CEO of Skydance Media, will become the CEO of the new company, making him the youngest studio owner in Hollywood at the age of 42.
Job Losses Expected
The merger is expected to result in significant job losses, although the exact number has not been disclosed. This has raised concerns among employees and industry experts, who are waiting to see how the merger will affect the company’s operations and workforce.
FCC Approval
The FCC approved the merger in a 2-1 vote, with Chairman Brendan Carr welcoming the obligations made by Skydance to address concerns about media bias and diversity. However, not all commissioners were in favor of the merger, with Democrat Anna Gomez voting against it, citing concerns about the impact on the American public.
Future of Paramount Global
The merger is expected to have a significant impact on the future of Paramount Global, with David Ellison at the helm. Ellison has a strong background in the entertainment industry, having co-financed several successful films, including "Top Gun" and "Mission: Impossible". The company is expected to undergo significant changes, with a focus on diversity, equity, and inclusion initiatives. The introduction of a CBS ombudsman to review alleged media bias in the network is also a key part of the merger agreement.
