Shari Redstone, the influential chair and controlling shareholder of Paramount Global, recently provided a poignant reflection on her family’s extensive legacy in the media industry as the company prepares for a transformative merger with Skydance Media. This pivotal moment marks the end of an era shaped by her father, Sumner Redstone, and underscores the enduring philosophy that “content is king.”
During an abbreviated call, Redstone lauded her father, Sumner Redstone, for meticulously building Viacom and subsequently Paramount into a global media powerhouse over nearly four decades. His unwavering conviction that content would always be paramount, regardless of debates surrounding content versus distribution, continues to be a foundational belief for the business and the broader entertainment landscape.
As the August 7th closing date for the Skydance merger rapidly approaches, Redstone expressed confidence in Skydance’s vision and their capacity to leverage technology and resources to build upon Paramount’s substantial legacy. She affirmed her belief that the Ellison investor group will be a strong steward of the valuable assets, ensuring long-term success for the restructured entity.
Redstone highlighted Paramount’s impressive array of accomplishments, expressing particular pride in programming that both informs and educates audiences on critical societal issues. This commitment is reflected in CBS’s remarkable 17-year streak as the number one broadcast network, alongside the company’s leading positions in cable with top-rated scripted series, reality shows, late-night programs, and children’s content.
Despite its successes, Paramount has faced recent challenges, including earnings discussions and controversies surrounding CBS News. Reports indicated scrutiny after a significant settlement related to a lawsuit, and a commissioner’s statements approving the merger also contained strong critiques of national news media, with Skydance reportedly agreeing to address concerns about bias.
The complex financial structure of the deal involves the Ellison investor group, including Gerry Cardinale’s RedBird Capital, acquiring Redstone’s controlling interest in her family holding company, NAI, for $2.4 billion. This initial step precedes Paramount’s all-stock acquisition of Skydance, valuing the latter at $4.75 billion, and includes a significant cash offer to existing Paramount shareholders.
While Redstone herself will be cashed out, the transaction has drawn scrutiny from investors who have questioned the transparency of her $2.4 billion payout. Some prominent figures, like Mario Gabelli, have indicated potential legal action post-merger to obtain more clarity, underscoring ongoing concerns about shareholder value amidst the company’s transition.
The vast media empire initiated by Sumner Redstone began with a single drive-in theater in 1934, evolving into National Amusements before acquiring industry titans like Viacom, Paramount, and CBS. However, in recent years, Paramount’s shares, like much of traditional media, have been significantly impacted by the decline in linear television, which historically formed the bulk of the company’s revenue.
Shari Redstone initiated the process of exploring a sale for the company in late 2024. Beyond her corporate endeavors, she is recognized for her philanthropic efforts, particularly in combating antisemitism. Last month, she also disclosed a personal health update regarding a thyroid cancer diagnosis, adding another layer to her public profile during this significant corporate transition.
