Shari Redstone, the powerful media executive who has long been at the helm of Paramount Global, is stepping down from the company’s board following its acquisition by Skydance Media. Her exit signals the end of an era for the Redstone family’s control over the media empire built by her father, Sumner Redstone. The $8 billion merger will bring fresh leadership and direction to Paramount, a company that has faced increasing financial struggles in recent years.
Shari Redstone’s Legacy in Media
Born on April 14, 1954, Shari Redstone grew up surrounded by the media business. As the daughter of Sumner Redstone, the late media mogul who controlled Viacom and CBS, she played an instrumental role in shaping the company’s future. Redstone has been a major force in the entertainment industry, serving as the president of National Amusements, the holding company that owned a controlling stake in Paramount Global.
Over the years, she has been at the center of major corporate battles, including the high-profile 2019 merger of CBS and Viacom, which ultimately led to the creation of Paramount Global. While she successfully united the two companies, the challenges of adapting to a rapidly changing media landscape proved difficult.
The Skydance Acquisition: A New Era for Paramount
In July 2024, Paramount Global struck a deal with Skydance Media, the company led by David Ellison. Under the terms of the agreement, Skydance will take control of Paramount by purchasing National Amusements’ controlling interest. The deal, valued at around $8 billion, aims to restructure the struggling media giant and make it more competitive in an era dominated by streaming platforms and tech giants.
David Ellison, the son of billionaire Oracle co-founder Larry Ellison, will take over as chairman and CEO of the newly restructured company. Jeff Shell, former CEO of NBCUniversal, will become president. The leadership change is expected to bring new strategic direction as Paramount seeks to regain its footing in the entertainment industry.
Why is Shari Redstone Stepping Down?
Despite having the option to remain on the board of the newly formed company, Redstone has chosen to step away. Her son, Tyler Korff, is also leaving his board position. The decision to exit entirely signals a full transition away from the family’s control of the company.
In a statement regarding the deal, Redstone expressed optimism about the future of the company under Skydance leadership. “We believe this transaction will create a stronger and more competitive company that is better positioned for long-term success in a rapidly evolving media landscape,” she said.
Challenges Paramount Faced Under Redstone’s Leadership
While Redstone successfully guided the company through the merger of CBS and Viacom, Paramount has faced mounting financial troubles in recent years:
- Declining Stock Value: Paramount’s stock has struggled amid declining revenues and increasing competition from streaming giants like Netflix, Disney+, and Amazon Prime Video.
- Mass Layoffs and Cost Cutting: The company faced multiple rounds of layoffs in 2024 as it tried to manage financial losses.
- Cable TV Decline: The company recorded a $6 billion write-down in its cable business in August 2024, signaling deep structural challenges.
- Struggles in Streaming: Despite efforts to push Paramount+ as a competitor to Netflix and Disney+, the service has failed to reach profitability at the expected pace.
Family Feuds and Financial Fallout
The Redstone family has long been a source of drama in the media world, and the Skydance deal has financial implications beyond just the business itself. One of the most interesting aspects of the acquisition is how it affects Shari Redstone’s estranged niece, Keryn Redstone. Due to a trust set up by Sumner Redstone, Keryn is expected to receive approximately $140 million from the sale.
This adds another chapter to the Redstone family’s history of legal battles and disputes over inheritance and control of their vast media empire. While Shari has been the dominant force in the family’s business dealings, the financial windfall from this deal marks one of the final pieces of the Redstone legacy being distributed.
What’s Next for Paramount?
With Shari Redstone stepping aside, all eyes are now on how David Ellison and Jeff Shell will steer the company. Their primary challenges include:
- Revitalizing Paramount’s Film Business: While the studio has had some successes, it has struggled to keep up with competitors like Disney and Warner Bros.
- Repositioning Paramount+ in the Streaming Wars: Paramount+ has seen moderate growth, but its profitability remains uncertain.
- Navigating a Shifting Media Landscape: Traditional media companies are increasingly struggling to compete with tech-driven entertainment businesses like YouTube, TikTok, and Amazon Studios.
Conclusion: The End of the Redstone Era
Shari Redstone’s exit from Paramount Global marks the conclusion of decades of Redstone family dominance in Hollywood and the media industry. From her father’s aggressive acquisitions to her own efforts in uniting CBS and Viacom, the Redstones shaped the entertainment industry in ways that will be felt for years to come.
As the company moves forward under new leadership, the industry will be watching closely to see if Skydance’s vision can revitalize Paramount and position it as a powerhouse in modern entertainment. For now, Shari Redstone leaves behind a complicated but undeniably impactful legacy in media history.
