Paramount and Skydance Close to Deal Before Big Meeting
Paramount Global and Skydance Media are finalizing the terms of a merger, with Paramount’s controlling shareholder Shari Redstone reviewing the final details. A source close to the negotiations has confirmed to Deadline that an agreement has been reached. The announcement follows a revision of the offer by Skydance, which initially seemed unlikely to be finalized before Paramount’s annual shareholder meeting scheduled for Tuesday. This event is particularly anticipated, as the three executives sharing the CEO office will present their strategic plans for the company.
Redstone, through National Amusements, holds 77% of Paramount’s voting shares. Skydance, led by David Ellison, has improved its offer in recent days to alleviate concerns of non-voting shareholders, offering them $15 per share, a 26% increase over Friday’s closing stock price. The proposed transaction would occur in two phases: first, Skydance would acquire National Amusements, which controls nearly 80% of Paramount’s voting shares, and then inject capital into Paramount, which in turn would acquire Skydance.
This merger structure is still under negotiation but has been further complicated after the Wall Street Journal reported competing offers from other potential buyers, including producer Steven Paul, who values National Amusements around $3 billion. Despite support from prominent Hollywood figures like James Cameron, an alternative scenario involving Apollo Global Management and Sony Pictures Entertainment has attracted interest, although the prospects for this option have seemed to wane in recent days.
The merger between Paramount and Skydance is not yet a certainty. Remaining points of contention include indemnification, specifically who will assume legal responsibilities if shareholders or other stakeholders decide to sue following the merger. Paramount and National Amusements’ recent search for a better offer, known as the “go-shop” clause, could also impact the outcome of the negotiations.
The shareholder meeting and the town hall with employees are pivotal moments for the CEO office, shared by Brian Robbins, George Cheeks, and Chris McCarthy, who replaced Bob Bakish. These events will be an opportunity to outline the company’s future strategy during a period of intense speculation about its future.
The uncertain climate and internal tensions at Paramount, amplified by the responsibility of managing the company’s Wall Street profile, are creating a stressful work environment. Paramount’s stock has lost 17% of its value since the start of the year, reflecting investor concerns about the company’s ability to profit from streaming as linear TV continues its decline. Despite these challenges, Paramount managed to renew a distribution agreement with Charter, avoiding the damaging blackouts that affected Disney last summer.
Source: Deadline
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Paramount Global and Skydance Media are finalizing the terms of a merger, with Paramount’s controlling shareholder Shari Redstone reviewing the final details. A source close to the negotiations has confirmed to Deadline that an agreement has been reached. The announcement follows a revision of the offer by Skydance, which initially seemed unlikely to be finalized before Paramount’s annual shareholder meeting scheduled for Tuesday. This event is particularly anticipated, as the three executives sharing the CEO office will present their strategic plans for the company.
Redstone, through National Amusements, holds 77% of Paramount’s voting shares. Skydance, led by David Ellison, has improved its offer in recent days to alleviate concerns of non-voting shareholders, offering them $15 per share, a 26% increase over Friday’s closing stock price. The proposed transaction would occur in two phases: first, Skydance would acquire National Amusements, which controls nearly 80% of Paramount’s voting shares, and then inject capital into Paramount, which in turn would acquire Skydance.
This merger structure is still under negotiation but has been further complicated after the Wall Street Journal reported competing offers from other potential buyers, including producer Steven Paul, who values National Amusements around $3 billion. Despite support from prominent Hollywood figures like James Cameron, an alternative scenario involving Apollo Global Management and Sony Pictures Entertainment has attracted interest, although the prospects for this option have seemed to wane in recent days.
The merger between Paramount and Skydance is not yet a certainty. Remaining points of contention include indemnification, specifically who will assume legal responsibilities if shareholders or other stakeholders decide to sue following the merger. Paramount and National Amusements’ recent search for a better offer, known as the “go-shop” clause, could also impact the outcome of the negotiations.
The shareholder meeting and the town hall with employees are pivotal moments for the CEO office, shared by Brian Robbins, George Cheeks, and Chris McCarthy, who replaced Bob Bakish. These events will be an opportunity to outline the company’s future strategy during a period of intense speculation about its future.
The uncertain climate and internal tensions at Paramount, amplified by the responsibility of managing the company’s Wall Street profile, are creating a stressful work environment. Paramount’s stock has lost 17% of its value since the start of the year, reflecting investor concerns about the company’s ability to profit from streaming as linear TV continues its decline. Despite these challenges, Paramount managed to renew a distribution agreement with Charter, avoiding the damaging blackouts that affected Disney last summer.
Source: Deadline
Share:
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