A Paramount Global board committee has recommended accepting the latest offer from Skydance Media, potentially heralding the endgame of a six-month negotiation period for the media giant’s assets. Paramount’s board is expected to vote on the Skydance deal at its annual meeting on Tuesday.
Shari Redstone, owner of Paramount’s parent company National Amusements, has reportedly favoured Skydance during the bidding process, entering exclusive talks with the Hollywood studio in April. However, the exclusivity window elapsed after the parties failed to reach a deal, opening the window to offers from other companies, with Sony emerging as the major rival.
But last week saw David Ellison’s Skydance sweeten the deal, aiming to win over shareholders. The revised offer enables Paramount shareholders to cash out at a premium, according to sources familiar with the negotiations. The agreement would see Skydance buy up non-voting Paramount shares at roughly $15 each, a 26 percent markup from the stock price at close on Friday. The proposed deal would also inject more than $1.5 billion cash into Paramount’s business.
The agreement would see Skydance buy National Amusements, which owns around 77 percent of Paramount’s voting shares. Paramount would also acquire Skydance, a motion that has now been approved by the board’s special committee.
But the merger is not yet a done deal. Negotiations are ongoing between the companies, and a limited “go-shop period” could see Paramount continue to accept alternative offers. Meanwhile National Amusements has received another bid from producer Steven Paul, CEO of Crystal Sky Pictures, valuing the company at around $3 billion.
Paramount concerns
The latest bid by Skydance marks an increase on its previous $2 billion cash offer for National Amusements, a deal criticised by Paramount shareholders who felt it favoured Shari Redstone. Paramount CEO Bob Bakish reportedly opposed the merger, prompting his resignation at the end of April.
Sony Pictures made its move a few days later, ofering $26 billion in cash as part of a bid backed by Apollo Global Management. But Sony and Apollo quickly cooled on the proposal, reportedly concerned about costs related to Paramount’s streaming assets, and began exploring alternative structures for the takeover.
The Redstone family has controlled Paramount since 1987, when National Amusements acquired the media conglomerate. Discussions between Redstone and Skydance began in December 2023, with RedBird Capital backing David Ellison’s company. Paramount stock has slid 17 percent this year, with investors concerned over the prospects of the broadcaster turning around its streaming business to account for the decline in linear TV. Paramount expects its streaming operations to turn a profit by 2025.
