David Ellison, the CEO of Skydance Media, sent a memo to the staff of Skydance on June 11 detailing that “the chapter” of seeking a potential with Paramount “has ended.” This message comes after Shari Redstone walked away from a deal that would have seen Skydance merging with Paramount. Redstone’s decision has ended talks that have gone on for six months between the two companies.
Ellison began the memo to Skydance employees by stating: “As you all know, for the last several months we have been actively exploring a transaction to acquire NAI and merge with Paramount Global, and today that chapter ended.”
He went on to praise the recent work of the Skydance team. “While I was focused on this effort, you all doubled down on Skydance. In just a short time since we went back to work after a historic two-guild strike, you have delivered more TV product in our company’s history, hit video game franchises, Emmy-winning sports content, and a feature film slate that is our industry’s finest. For all of this and more, I thank you.”
The executive has added that Skydance is “stronger than ever because of you” and that they “are stronger because of this process.” He went on to state that Skydance “is smarter” for having conducted this plan.
“We know more about our business, our potential, and the marketplace at large,” Ellison continued. “We are more confident than ever — not just about Skydance but about the future of entertainment and our ability to continue building a next-generation content company on our terms, with the greatest capital, creative and technological resources, and talent in the industry. The bottom line: our future is incredibly bright and tomorrow we will keep building to make it even better.”
Though the CEO expressed regret that the deal did not come together with the studio Skydance has been associated with, he wrote, “Paramount will always hold a special place for me, we had our first slate deal with the studio and continue to co-own several marquee franchises together. I have great respect for the legacy of Paramount, value our ongoing partnership, and wish them the best.”
The CEO then closed by thanking the people at Skydance. He went on to praise each one for “[their] patience and support as [they] chart the next phase of Skydance.”
The varying and intermittent talks that occurred between Skydance and Paramount shocked not just Skydance, but others within the entertainment industry. Redstone, which is Paramount Gllobal’s controlling shareholder through National Amusements Inc., owns 77% of the voting shares in Paramount. Paramount Global’s shares plummeted 7.9% at the last half-hour of Trading Tuesday when the news of the deal’s termination was detailed and closed at roughly $11.04 per share.
In a statement, Redstone’s NAI stated: “National Amusements, Inc., the majority voting shareholder of Paramount Global, today announced that they have not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.”
