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Paramount and Skydance merging

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  • Paramount and Skydance have agreed to terms of a merger, CNBC’s David Faber reported Monday.
  • A deal could be announced in the coming days.
Paramount and Skydance have agreed to terms of a merger, CNBC’s David Faber reported Monday. A deal could be announced in the coming days, he said.

A Paramount special committee and the buying consortium — David Ellison’s Skydance, backed by private equity firms RedBird Capital and KKR — agreed to the terms. The deal is awaiting signoff from Paramount’s controlling shareholder, Shari Redstone, who owns National Amusements, which owns 77% of class A Paramount shares, Faber said Monday.




The agreement terms come after weeks of discussion and a recent competing offer from Apollo Global Management and Sony Pictures.

“We received the financial terms of the proposed Paramount/Skydance transaction over the weekend and we are reviewing them,” said a National Amusements spokesperson.

The deal currently calls for Redstone to receive $2 billion for National Amusements, Faber reported Monday. Skydance would buy out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion, leaving the holders with equity in the new company.

Skydance and RedBird would also contribute $1.5 billion in cash to Paramount’s balance sheet to help reduce debt.

Following the deal’s close, Skydance and RedBird would own two-thirds of Paramount, and the class B shareholders would own the remaining third of the company, Faber reported. The negotiated terms were reported earlier by The Wall Street Journal.




The deal will not require a vote from the shareholders, which was part of the negotiations, Faber reported. Paramount’s annual shareholder meeting will take place on Tuesday.

The deal is valued at $8 billion, an increase from the $5 billion offer on the table earlier. Under those earlier terms, Redstone would have received less than $2 billion for her stake, and the class B shareholders would have been bought out at a nearly 30% premium at $11 a share, CNBC previously reported.

No deal announcement is expected before the meeting, according to people familiar with the matter, who asked not to be named because the discussions are private. In addition to the twisted and turns of the negotiations with buyers, Paramount’s C-suite has also undergone a shakeup in recent months.
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source: https://www.cnbc.com/2024/06/03/paramount-skydance-merger-deal-update.html

https://twitter.com/x/status/1797632323971678516
 
Im lowkey glad it wasnt Sony.
 
All these mergers can't be good in the long run.
 
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