Paramount Agrees To Skydance Merger, Seemingly Ending Saga

Paramount Global (PARA) announced that it has agreed to position to merge pinch Skydance Media, seemingly bringing an extremity to months of negotiations.

Shareholders tin opt to person $23 per Class A voting stock they hold, aliases $15 per Class B share, which don't person voting rights. Skydance will salary $2.4 cardinal to get Shari Redstone's National Amusements, Paramount's controlling shareholder, past merge pinch Paramount, nan companies said Sunday night.

Skydance, Partners To Spend Over $8 Billion connected Deal

Skydance and RedBird Capital Partners, its backstage equity backer, will salary $2.4 cardinal for National Amusements, on pinch $4.5 cardinal group to beryllium paid to Paramount shareholders. Skydance and RedBird will besides put $1.5 cardinal toward Paramount's equilibrium sheet, which presently holds billions successful debt, bringing nan full magnitude of superior progressive successful nan woody to astir $8.4 billion.

Skydance plans to ain each of nan Class A voting shares by nan clip nan transaction is closed, offering existent shareholders nan $23-per-share option, aliases nan expertise to speech each of their shares for astir 1.53 Class B non-voting shares of "New Paramount." The companies said that Class B shareholders will ain astir 30% of nan company's outstanding equity, pinch Skydance owning nan remaining 70%.

David Ellison To Become CEO of New Paramount

David Ellison, laminitis of Skydance and boy of Oracle (ORCL) co-founder Larry Ellison, will return complete arsenic Chief Executive Officer (CEO) aft nan media conglomerate's erstwhile main executive, Bob Bakish, near earlier this year, pinch a three-person "office of nan CEO" taking his place.

"I americium incredibly grateful to Shari Redstone and her family who person agreed to entrust america pinch nan opportunity to lead Paramount," Ellison said. "We are committed to energizing nan business and bolstering Paramount pinch modern technology, caller activity and a imaginative subject that intends to enrich generations to come.”

Paramount's committee and National Amusements person approved nan deal, sending nan merger into a 45-day "go shop" play wherever different willing parties tin make offers for Paramount to perchance amended upon Skydance's offer. Assuming nary amended connection emerges and nan Skydance woody goes through, nan companies said it is expected to adjacent successful nan first half of 2025.

The woody brings to an extremity months of negotiations that included Paramount receiving offers from a number of companies and individuals from crossed media and backstage equity. Redstone reportedly called disconnected a tentative deal past period earlier Paramount's committee could ballot connected it, but nan sides were said to beryllium successful negotiations again past week.

Paramount shares roseate successful premarket trading Monday but slipped 2.6% to $11.50 soon aft markets opened. They are down astir 22% since nan commencement of 2024.