June 23, 2024


Paramount Global and Skydance Media have reportedly agreed on a $8 billion merger deal.

Paramount Global and Skydance Media have reportedly agreed on a $8 billion merger deal.
Image: Mario Tama / Staff (Getty Images)

Paramount Global and Skydance Media have reportedly agreed on terms for a merger after months of talks.

CNBC reports that a committee of Paramount’s independent directors and Skydance’s buying group, which includes the private equity firms RedBird Capital Partners and KKR, have agreed to a deal. The deal is awaiting final approval from Shari Redstone, the head of National Amusements, the holding company which owns 77% of Paramount’s voting shares. An official announcement of the roughly $8 billion deal will be made in the next 24 to 48 hours, CNBC reports.

Paramount declined to comment Monday morning.

Under the newly proposed deal, first reported by The Wall Street Journal, Skydance is set to acquire National Amusements for about $2 billion. Skydance, led by David Ellison, the son of Oracle co-founder and billionaire Larry Ellison, has also agreed to buy almost 50% of Paramount’s non-voting shares at $15 per share, for a total of $4.5 billion. That would be a roughly 26% premium above the stock’s closing price on Friday.

In exchange, these shareholders will own equity in the newly merged company.

Skydance and its backers will also inject $1.5 billion in cash into Paramount’s balance sheet to help reduce debt.

After the deal closes, Skydance would own about two-thirds of the new company, and non-voting shareholders would own the remaining one-third.

Paramount is currently being led by an “office of the CEO” made up of three division heads at the company. That office is made up of CBS CEO George Cheeks; Chris McCarthy, the CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Paramount Pictures and Nickelodeon CEO Brian Robbins. The trio are set to present their long-term plan for the company at Paramount’s annual shareholder meeting on Tuesday.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *