NEW YORK (NEWSnet/AP) — Entertainment giant Paramount has agreed to merge with Skydance, closing out a decades-long run by the Redstone family in Hollywood.

Shari Redstone's National Amusements has owned more than three-quarters of Paramount’s Class A voting shares through the estate of her late father, Sumner Redstone. She had battled to maintain control of the company that owns CBS, which is behind blockbuster films such as “Top Gun" and “The Godfather.”

The new combined company is valued at around $28 billion.

In connection with the proposed transaction, which is expected to close in September 2025 pending regulatory approval, a consortium led by the Ellison family and RedBird Capital will be investing $8 billion.

Skydance, based in Santa Monica, California, has helped produce some major Paramount hits in recent years, including Tom Cruise films like “Top Gun: Maverick” and installments of the “Mission Impossible” series.

Skydance was founded in 2010 by David Ellison and it quickly formed a production partnership with Paramount that same year. If the deal is approved, Ellison will become chairman and chief executive officer of what’s being called New Paramount.

Paramount is one of Hollywood’s oldest studios, dating back its founding in 1914 as a distributor. Throughout its history, Paramount has had a hand in releasing films — from “Sunset Boulevard" and “The Godfather," to “Raiders of the Lost Ark” and “Titanic.”

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