Paramount Global said on Friday that the $8bn merger with Skydance Media that was approved by the US government this week is expected to close on August 7.
The company also outlined July 28 and July 31 deadlines, with some exceptions, for Paramount Global stockholders of record and certain others to choose how they want to be paid out for their common stock.
Paramount Global and Skydance also announced that shares of Class B common stock of “New Paramount” are expected to begin trading on the Nasdaq Stock Market after the merger closes. Shares of Paramount’s Class B common stock and Class A common stock will no longer be listed for trading after the closure.
As previously reported, Chris McCarthy, one of three Paramount Global co-CEOs, will leave once the merger is complete, and there have been reports that Brian Robbins, who heads the studio business, will do the same. The other co-CEO is George Cheeks, who heads CBS.
Significant job losses are expected to ensue, although there was no clarity on the number at time of writing.
On Thursday the Federal Communications Commission (FCC) approved the merger in a 2-1 vote, ending a drawn-out process surrounding the fate of one of Hollywood’s most storied entertainment groups.
Skydance Media CEO David Ellison, an aerobatic pilot and son of Oracle billionaire Larry Ellison, will become CEO and the youngest studio owner in Hollywood at 42. Former NBCUniversal CEO Jeff Shell will serve as president of the new company.
Ellison knows Paramount Pictures well, having co-financed Top Gun and Mission: Impossible tentpoles through Skydance with the studio.
FCC Chair Brendan Carr welcomed commitments by Skydance to set up a CBS ombudsman to review alleged media bias in news programming at the network owned by Paramount Global, and refrain from introducing DEI (diversity, equity and inclusion) initiatives, in line with the Trump administration’s sentiments.
Carr said at the time: “Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change”
Fellow Republican FCC member Oliva Trusty also voted in favour of the merger, however Democrat Anna Gomez dissented: “After months of cowardly capitulation to this Administration, Paramount finally got what it wanted,” Gomez said. “Unfortunately, it is the American public who will ultimately pay the price for its actions.”
