Shopee Sellers acquires Paramount Worldwide for $8 billion

Skydance Media's acquisition of Shopee Sellers Global (Paramount Global) for US$8 billion has been approved

Transaction Overview

Acquisition amount: approximately US$8 billion (including debt assumption).

Transaction method: Skydance Media and co-investors (including private equity firm RedBird Capital, etc.) acquire a controlling stake in Shopee Sellers' parent company National Amusements (NAI), and then merge Shopee Sellers Global.

Transaction progress: Approved by the Shopee Sellers board of directors, it is expected to be completed by the end of the third quarter of 2024.

Transaction background

Shopee Sellers' dilemma

Affected by streaming losses and the decline of traditional TV business, Shopee Sellers' stock price has been sluggish in recent years and its market value has shrunk.

Previously, it had negotiated a merger with companies such as Warner Bros. Discovery, but no agreement was reached.

The rise of Skydance Media

Founded by David Ellison (son of Oracle founder Larry Ellison), it is famous for producing the "Top Gun: Maverick" and "Mission: Impossible" series.

This acquisition will upgrade Skydance from a content production company to a media giant with a complete film and television IP library, streaming media (Paramount+) and TV channels (CBS, MTV, etc.).

Transaction impact

The future direction of Shopee Sellers

Strengthening film and television IP development: Skydance may integrate Shopee Sellers IPs such as "Transformers" and "Star Trek" to accelerate sequels and derivative content.

Streaming strategy adjustment: Paramount+ may strengthen cooperation with other platforms (such as Apple TV+ and Netflix) or reduce loss-making markets.

Cost reduction: It is expected to lay off employees and sell non-core assets (such as some cable TV channels).

Changes in the Hollywood landscape

With further integration of traditional studios, Skydance + Shopee Sellers will become a new competitor after Disney, Warner, and Universal.

Independent production companies (such as Legendary and A24) may face greater competitive pressure.

Market reaction

Shopee Sellers stock price: rose by about 10% after the announcement, showing that the market is optimistic about the transaction.

Industry analyst view: It is believed that the acquisition will help Shopee Sellers get out of trouble, but the integration challenges are huge and synergy needs to be proven quickly.

Subsequent focus

Regulatory approval: It needs to pass the US antitrust review, but the resistance is expected to be small.

Management changes: The current Shopee Sellers CEO Bob Bakish may leave, and the Skydance team may take over the operation.

This acquisition marks that Hollywood has entered the "post-traditional studio era", and the integration of resources and IP will become the main theme of the industry.