Redstone Era for Paramount and CBS Ends With Little Fanfare (Column)

The Redstone clan’s journey with Paramount Pictures has come full circle after a 31-year battle that ended with Shari Redstone securing the ability to sell Paramount Pictures, CBS, Paramount+, MTV, Nickelodeon, and other legacy cablers to David Ellison’s Skydance Media. The victory was hard-won and came at a great cost, especially for CBS.

Skydance paid approximately $8 billion for Paramount Global, a stark difference from the $9.5 billion deal Sumner Redstone closed for Paramount Pictures alone in 1994. Adjusted for inflation, that would amount to $19.5 billion today. Sumner Redstone’s acquisition of Paramount Pictures marked the beginning of a new era in Hollywood, filled with energy and determination. In contrast, Shari Redstone’s handover to Skydance Media five years after her father’s passing lacked the same fanfare.

The sale of Paramount Global signifies the end of an era for a company that boasts irreplaceable assets like Paramount Pictures and CBS, which have been integral parts of the media landscape for over a century. However, the company has struggled to adapt to the macroeconomic changes that have reshaped the entertainment industry, particularly legacy studios like Paramount Global.

Shari Redstone’s efforts to clean up her father’s mess at Viacom set the stage for the sale to Skydance Media. Amidst internal drama and neglect, Paramount began to suffer, prompting Shari to reunite Viacom and CBS in 2019. This move faced opposition from figures like former CBS CEO Leslie Moonves but ultimately paved the way for the sale to Skydance Media.

David Ellison’s acquisition of Paramount Global signifies a new chapter for the company. With control over 70% of the equity and 100% of the voting power, Ellison now leads Paramount Skydance. The sale also saw Paramount Global settle a lawsuit with President Trump for $16 million to secure FCC approval, a move that left CBS News bruised by business imperatives.

As David Ellison takes the reins at Paramount, there is hope that he learns from the past mistakes of Paramount and CBS. Visiting CBS News’ operations as his first act shows a recognition of the challenges faced by the company. As the new King of Content at Paramount, Ellison must navigate the future of these iconic brands with care and consideration for their storied histories.