Paramount's Heiress Bows Out

An $8 billion sale of media empire caps Shari Redstone's eventful leadership

- JESSICA TOONKEL

Paramount Global boss Shari Redstone took a winding path to sell her family's media empire. Along the way, a CEO was dethroned, multiple board members resigned and investors lashed out.

Now, the 70-year-old media heiress is preparing to hand the reins to a new owner in 2025-but she promises not to go away entirely, and neither will Paramount's problems.

Redstone earlier this year struck an $8 billion deal with Hollywood production company Skydance Media that will reshape the entertainment landscape. She is selling National Amusements, the family company that owns movie theaters and through which she controls Paramount.

As part of the transaction, Skydance, backed by investors including RedBird Capital Partners, will merge with Paramount, gaining control of a collection of assets that include the iconic studio behind "The Godfather" and "Titanic," CBS and cable networks like MTV.

Skydance Chief Executive Officer David Ellison will face a formidable task: Paramount shares are down about 26% this year as a growing Paramount+ streaming business hasn't been enough to offset the accelerating decline of the company's cable business, which took a $6 billion write-down in August.

The landscape is shifting as more people abandon traditional TV; Comcast is spinning off nearly all its cable channels in 2025.

Ellison and his top lieutenant, former NBCUniversal CEO Jeff Shell, have explored how to catapult Paramount's position in streaming. They are looking at integrating the company's free, ad-supported Pluto service into Paramount+, people familiar with the situation said.