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Cheeks, McCarthy and Robbins say they’ll proceed finishing up their restructuring plan, together with layoffs and asset gross sales
After months of talks, Paramount International and Skydance Media formally introduced a deal to merge Sunday night time.
Shari Redstone, non-executive chair of Paramount International and its controlling shareholder by way of Nationwide Amusements Inc., addressed the pact in a memo to staff, as did the trio of co-CEOs presently main the corporate: George Cheeks, president and CEO of CBS; Chris McCarthy, president and CEO, Showtime/MTV Leisure Studios and Paramount Media Networks; and Brian Robbins, president and CEO of Paramount Photos and Nickelodeon. (Learn the memos beneath.)
“As a longtime manufacturing accomplice to Paramount, Skydance is effectively conscious of what we’ve got completed through the years and it’s for that motive that they’ve pursued a mix with Paramount,” Redstone wrote. “They’ve a transparent strategic imaginative and prescient for the longer term and the assets to construct on Paramount International’s aggressive benefits to drive the Firm’s success.”
In her memo, Redstone referred to her late father, Sumner Redstone, who assembled the items of what turned Viacom and Paramount International: “Our household has all the time been dedicated to persevering with my Dad’s legacy and guaranteeing Paramount’s enduring success. Per that, because the tempo of change within the trade has continued to speed up, it has been our accountability to work with management to make modifications as a way to keep our aggressive place and gas development, pondering of each the close to and long term.”
The deal is predicted to shut within the first half of 2025 — and till then, the co-CEOs advised staff in their very own memo, “it’s enterprise as standard.”
The present plan beneath Cheeks, McCarthy and Robbins contains layoffs and different measures geared toward reaching upwards of $500 million in annualized prices; promoting property to pay down debt; and pursuing a three way partnership to scale up Paramount+ and speed up its flip to profitability.
“We now have been on a journey to rework Paramount for the longer term, and because of your laborious work, Paramount brings large worth to this mix with Skydance,” Cheeks, McCarthy and Robbins wrote.
Below the two-step Skydance-Paramount deal, Skydance will purchase Redstone’s Nationwide Amusements Inc., which holds a 77% controlling stake in Paramount; subsequently, Skydance will merge with Paramount International. As soon as these transactions shut, the administration workforce of “New Paramount” will comprise Skydance chief David Ellison as chairman and CEO and ex-NBCUniversal chief Jeff Shell as president. The Ellison household and its monetary accomplice, RedBird Capital Companions, mentioned they’ll make investments greater than $8 billion in Paramount.
Earlier than the Skydance-Paramount deal closes, Paramount International could execute different transactions.
Warner Bros. Discovery has expressed curiosity in exploring potential tie-up between Max and Paramount+. As well as, Paramount International reportedly has initiated talks to promote BET to an investor group led by BET chief Scott Mills. And the corporate is predicted to hunt consumers for the famed Paramount Photos Studio lot in L.A.
Learn the memo from Shari Redstone:
Good night. Simply moments in the past, it was introduced that we’ve got entered into an settlement beneath which Skydance Media will purchase Nationwide Amusements and merge Skydance’s enterprise with Paramount International. I wished to take this chance to succeed in out to you immediately not solely to share the information, however to precise my large gratitude to every certainly one of you for what we’ve got been in a position to accomplish collectively for the previous a number of many years.
As you realize, my father constructed Viacom and CBS by bringing collectively a bunch of one of the best property in media, information, and leisure. Whereas folks usually debated whether or not content material or distribution dominated the day, my father was ruled in all of his selections by his perception that content material was certainly king. That has by no means been extra essential than it’s right now, when in a cluttered market, we proceed to create content material that resonates with our customers, that they frequently hunt down, and that retains them wanting extra. Our success is due to you, what you may have completed individually, and much more importantly, as a workforce.
Seeing the best way you may have come collectively since we launched Paramount International has been one of many highlights of my years at this firm, and your accomplishments are evident throughout the enterprise. Paramount+ is among the many fastest-growing streaming companies with an distinctive vary of content material interesting to all demographics. CBS has been the #1 broadcast community for 16 years and working, with clear power throughout genres. Paramount Photos has produced eight #1 films up to now two years alone and continues to create hit after hit. Our linear networks have delivered culture-shaping content material that excites audiences, together with the launch of the “Taylor Sheridan universe” with Yellowstone on the Paramount Community. And, Pluto TV is right now probably the most extensively distributed FAST service.
As all this was completed, we remained devoted to educating and informing ourselves and our audiences in our efforts to battle hate and discrimination, and supporting different essential causes within the US and all over the world. I’m so grateful to all of you for what we’ve got been in a position to accomplish to make a distinction.
Our household has all the time been dedicated to persevering with my Dad’s legacy and guaranteeing Paramount’s enduring success. Per that, because the tempo of change within the trade has continued to speed up, it has been our accountability to work with management to make modifications as a way to keep our aggressive place and gas development, pondering of each the close to and long term. Most just lately, this led to the appointment of George Cheeks, Chris McCarthy, and Brian Robbins as Co-CEOs, to take the significant actions essential to bolster the Firm each operationally and financially. I feel we will all agree on their monumental contributions to this firm. On the similar time, as you realize, our Board has centered on guaranteeing we’re pursuing all alternatives to greatest place the Firm for the longer term and maximize worth creation for all shareholders.
As a longtime manufacturing accomplice to Paramount, Skydance is effectively conscious of what we’ve got completed through the years and it’s for that motive that they’ve pursued a mix with Paramount. They’ve a transparent strategic imaginative and prescient for the longer term and the assets to construct on Paramount International’s aggressive benefits to drive the Firm’s success.
The settlement we entered into right now is topic to closing situations, and we anticipate the deal to be accomplished within the first half of 2025. Till then, George, Chris, and Brian will proceed to guide the Firm, and they are going to be sharing extra with you shortly. I in fact will even be right here to cheer you on, and help in any approach that I can. It has really been my honor to work with all of you these previous a number of years, and to see so a lot of our goals come to fruition.
I need to categorical my deepest because of you to your dedication, laborious work, and most significantly your help of my household and me. In opposition to a difficult trade backdrop and plenty of modifications on the firm, you may have protected Paramount’s property and delivered for our audiences. As I’ve mentioned earlier than, and I’ll all the time say, we’ve got one of the best folks within the enterprise right here at Paramount and it’s really a privilege to work with you. I’ll all the time treasure the relationships I’ve had with you and the methods we’ve got labored collectively to differentiate ourselves in our trade.
All one of the best, Shari
Learn the memo from the present Paramount International co-CEOs:
Hello Everybody,
At the moment marks an essential milestone for Paramount, as we simply introduced a definitive settlement with Skydance Media. By combining Skydance with Paramount, we might construct on our storied legacy to create an excellent stronger, next-generation media and expertise chief, positioned to win in right now’s quickly reworking media panorama.
As Shari shared, we anticipate this transaction to shut within the first half of 2025, because it’s topic to regulatory approvals and different steps mandatory to finish the deal. The settlement additionally contains what’s referred to as a “go-shop” provision, which implies that the Particular Committee of Paramount’s Board of Administrators and its representatives will likely be permitted to actively solicit and consider different acquisition proposals for a 45-day interval.
Till the transaction closes, it’s enterprise as standard — we are going to proceed to function as an unbiased firm and transfer ahead with the strategic plan we outlined at our city corridor. This contains actions to modernize our group by streamlining groups, eliminating duplicative capabilities and decreasing the scale of our workforce. We will even proceed to discover alternatives to rework world streaming and optimize our asset combine by divesting a few of our property.
We now have been on a journey to rework Paramount for the longer term, and because of your laborious work, Paramount brings large worth to this mix with Skydance. Paramount continues to be the house of invaluable IP that powers one of the best that leisure has to supply to audiences all over the world, and a vibrant artistic tradition. And, our property are among the many most compelling within the trade, together with the primary US broadcast community with CBS and our main free-to-air networks within the UK, Australia, Argentina, and Chile; iconic manufacturers like Nickelodeon, MTV, BET, and Showtime; a high 5 SVOD service within the US with Paramount+; and a number one world free ad-supported streaming service in Pluto TV. And naturally, Paramount Photos continues to create genre-spanning movies that ship on the field workplace, most just lately with A Quiet Place: Day One – the newest addition to our 100-year-old movie library.
This transaction would mix Skydance’s monetary assets, deep working expertise, and cutting-edge expertise with Paramount’s iconic IP, deep movie and tv library, confirmed hit-making capabilities, and linear and streaming platforms that attain hundreds of thousands of viewers. And, we already know Paramount and Skydance, led by David Ellison, can obtain unbelievable outcomes collectively, as evidenced by our robust, 15-year collaboration that has delivered extremely profitable movies and franchises like High Gun: Maverick and Mission: Unimaginable – Fallout.
The Paramount that we all know right now wouldn’t be potential with out the management of Shari and the Redstone household. It’s due to their imaginative and prescient and help over the various years that we’re one of many main world leisure firms on this planet, with one of the best workforce within the enterprise. We wish to sincerely thank Shari and her total household for his or her unwavering help and management. We might additionally wish to thank our Board of Administrators, who’ve helped information us alongside the best way. We recognize all that they do on behalf of Paramount.
And most significantly, we need to thank all of you, our Paramount International workforce, for all you may have completed and proceed to do to drive Paramount to new heights.
We all know you should have questions and we’ll share as a lot info as we will all through this course of. Within the meantime, you possibly can learn extra concerning the settlement within the press launch right here.
Thanks,
George, Chris and Brian