Merger with Skydance Media
These layoffs are also likely linked to Paramount’s forthcoming merger with Skydance Media. The deal was announced in June and is expected to be completed by the first part of 2025. The merger is set to proceed to a regulatory review process, with Skydance poised to take control of Paramount.
David Ellison’s company, Skydance, has made a significant investment of $8 billion to acquire controlling shareholder National Amusements Inc. and eventually merge with Paramount. Financial backers of this deal include RedBird Capital and Oracle billionaire Larry Ellison.
The timing of these layoffs is particularly notable, coming just before the August 21 expiration of the “go-shop” period in the Skydance proposal. This period allows other bidders to come forward with competing offers. If no other compelling offer emerges and gains the support of Paramount’s board, the Skydance transaction will move forward as planned.
Strategic Shifts in Streaming and Content
Paramount Global has also been making strategic adjustments to its streaming services. The company has raised prices for its streaming platform and has also removed entire libraries of content, a move that has been met with mixed reactions from consumers.
