In a significant move within the media industry, Paramount Global is reportedly in discussions to purchase Skydance Media through a transaction entirely composed of stock, valued at approximately $5 billion. This development was first brought to light last Friday.
The initial phase of the deal could see National Amusements, the controlling party of Paramount, receiving a cash payment surpassing $2 billion. This information comes from insiders close to the situation.
Additionally, there's talk of Skydance potentially injecting a sizeable amount of cash into Paramount, the entity behind the Paramount Pictures film studio. This financial boost aims to strengthen Paramount’s financial standing and assist in reducing its debt load.
Despite attempts to reach out, both Paramount and Skydance have remained silent on these reports outside of normal business hours. Similarly, attempts to contact National Amusements and its key stakeholder, Shari Redstone, have yielded no immediate response.
Paramount's board members have reportedly agreed to commence exclusive merger negotiations with Skydance Media. This decision comes in the wake of rejecting a $26 billion proposal from Apollo Global Management. The merger would not only offer greater strategic flexibility regarding franchise management but also provide Redstone with a cash influx and nonvoting share investors with stock in the newly formed entity.
The discussions between Paramount and Skydance are reportedly more progressed than those with Apollo. A successful deal would mark the end of Shari Redstone's reign over the media conglomerate established by her late father, Sumner Redstone. Skydance, under the leadership of David Ellison, son of Oracle’s co-founder Larry Ellison, is looking to acquire National Amusements, which holds a significant majority of Paramount's voting stock.
This potential merger hinges on Ellison's ability to successfully combine Skydance and Paramount Global, setting the stage for a significant reshaping of the media landscape.
