Major transaction in the world of film - the merger of 28 billion dollars

The consumption of films, series and artistic, is constantly increasing, the popularity of streaming networks having its say. Against this background, a major transaction took place in the film world. One of Hollywood's oldest companies, Paramount Global, has merged with independent film studio Skydance Media.

According to the BBC, as part of the deal, Paramount's non-executive chairman Shari Redstone will sell her family's majority stake in the company in a complex transaction that will result in a new company worth about $28 billion. It marks the end of an era for the Redstone family, whose boss, Sumner Redstone, turned a drive-in movie theater chain into a vast media empire. In addition to Paramount, the group includes television networks CBS, Comedy Central, Nickelodeon and MTV. "Our hope is that the Skydance transaction will enable Paramount's continued success in this rapidly changing environment," said Shari Redstone. According to the company, its television channels have a global reach of over 4.3 billion subscribers in more than 180 countries. Under the deal, Skydance will invest about $8 billion in Paramount, including paying $2.4 billion to National Amusements, which controls the group. National Amusements owns only 10% of Paramount Group's shares, but holds almost 80% of its voting rights. Paramount said it expects to close the deal by next summer. Paramount Global traces its origins back over a century to the founding of Paramount Pictures Corporation in 1914. The studio has produced many blockbuster films, including "The Godfather," "Star Trek" and "Mission: Impossible." The entertainment giant has struggled over the past decade. Shares of Paramount Global have fallen more than 75% over the past five years. Skydance is owned by David Ellison, the son of Larry Ellison, who founded the American technology giant Oracle. The announcement came after eight months of negotiations in which Redstone held talks with a number of potential partners, including Sony and private equity firm Apollo. In April, Paramount chief executive Bob Bakish left the company after clashing with Redstone over the planned Skydance deal. The transaction takes place in the context in which the global entertainment industry is being transformed by the video-streaming revolution.