Paramount and Skydance Sign Merger Agreement to Form $28 Billion Company

Paramount shareholders stand to gain 28 percent to 48 percent premium on their stock holding.

Tom Cruise attends the premiere of 'Mission: Impossible—Dead Reckoning Part One' presented by Paramount Pictures and Skydance at Rose Theater, Jazz at Lincoln Center in New York, on July 10, 2023. Bryan Bedder/Getty Images for Paramount Pictures

Paramount Global and Skydance Media have agreed to merge into a new company, with the deal set to be closed in the first half of next year.

The companies, which have funded several Hollywood blockbusters, will merge to create “New Paramount,” according to a July 7 press release from Skydance. The merger will take place through a two-step transaction.