David Ellison‘s Skydance Media will take over Paramount Pictures with an $8 billion investment. The two companies have been trying to work something out over the past several months and they finally locked down a deal.

The board of directors signed off on a two-step transaction: First the acquisition of National Amusements Inc., the entity run by Shari Redstone that had controlled almost 80% of Paramount voting shares. That transaction will be followed by a full merger.

Ellison will step into the roles of chairman and CEO, and former NBCUniversal chief Jeff Shell will lead the company as president.

The deal is expected to close in the first half of 2025. In a press release, Skydance said it will “reposition Paramount to improve profitability, foster stability and independence for creators, and enable more investment in faster growing digital platforms.”

The deal includes a 45-day “go-shop” period, “during which alternative offers could be considered. A handful of bidders, among them Barry Diller and Edgar Bronfman Jr., have expressed interest in a controlling stake in Paramount, but it’s unclear whether they will be willing to match Skydance’s accepted offer.”

Shari Redstone said in a statement: “In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global.

“He had a vision that ‘content was king’ and was always committed to delivering great content for all audiences around the world. That vision has remained at the core of Paramount’s success and our accomplishments are a direct result of the incredibly talented, creative, and dedicated individuals who work at the company.

“Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king. Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment.

“As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”

Skydance and Paramount have a 15-year relationship and it’s noted that Skydance’s “exceptional pool of in-house creative animation talent, led by pioneer John Lasseter,” will position the company as a player in animation.

Ellison said: “This is a defining and transformative time for our industry and the storytellers, content creators and financial stakeholders who are invested in the Paramount legacy and the longevity of the entertainment economy.

“I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come.”

Gerry Cardinale, founder and managing partner of RedBird Capital, described the deal as a “recapitalization of Paramount and combination with Skydance.” The transaction will be “an important moment in the entertainment industry at a time when incumbent media companies are increasingly challenged by technological disintermediation.

“As one of the iconic media brands and libraries in Hollywood, Paramount has the intellectual property foundation to ensure longevity through this evolution – but it will require a new generation of visionary leadership together with experienced operational management to navigate this next phase.

“RedBird is making a substantial financial investment in partnership with the Ellison family because we believe that the pro forma company under this leadership team will be the pace car for how these incumbent legacy media businesses will need to be run in the future.”

Maybe the studio will actually manage to get a new Star Trek movie off the ground under the new management.