Shari Redstone’s National Amusements has reached a preliminary deal to sell its controlling interest in Paramount Global to David Ellison’s Skydance Media, as per sources on Tuesday. Skydance has reached an agreement for a preliminary deal with National Amusements to merge with Paramount.
Paramount and Skydance deal
Under the tentative agreement, Skydance would pay $1.75 billion for National Amusements, which owns 77% of the voting shares of Paramount. The Paramount and Skydance deal includes a 45-day “go-shop” period, in which other bidders could submit offers as per report.
National Amusements acquisition
Others who have expressed interest in National Amusements acquisition include film producer Steven Paul, Seagram heir Edgar Bronfman Jr. and IAC’s Barry Diller.
One source with ties to a potential bidder said it was unlikely the others would abandon their efforts, in part because they may put forth bids that are more lucrative for Paramount shareholders or Redstone personally.
National Amusements has referred the Skydance deal to a special committee of Paramount’s board for review, according to two people familiar with the matter. Under the new arrangement,
National Amusements is not mandating that the Paramount merger be approved by a majority of non-Redstone shareholders, a previous sticking point, as per report.
Skydance and Paramount agreement envision
The sale is envisioned as the first part of a two-phase transaction, in which the smaller independent studio Skydance would merge with Paramount, home of the namesake film studio, CBS and cable networks such as MTV and Nickelodeon.
The century-old Paramount Pictures is known for films such as “Titanic,” “The Godfather” and the “Transformers” franchise. Skydance has co-produced Paramount movies such as “Top Gun: Maverick” and “Star Trek Into Darkness.”
Paramount declined to comment on a possible deal with Skydance, and a spokesperson for the special committee could not immediately be reached for comment.
Paramount and Skydance deal a strategic move
National Amusements re-engaged with Skydance over the past week, even as it continued conversations with other interested parties, according to one source familiar with the talks.
Redstone always saw a strategic value in the combination of Paramount and Skydance, the source said.
National Amusements owns movie theaters in the U.S., Britain and Latin America, and holds the Redstone family’s 77% of Paramount’s class A voting stock.
Rise in Paramount shares rise
The news of deal with Skydance sent Paramount shares rise up to 9% in after-hours trading. The paramount stock at closing was at $11.57.
