Benzinga - by Michael Cohen, Benzinga Editor.
The highly anticipated merger talks between Paramount Global (NASDAQ:PARA) and Skydance have been discontinued, marking the end of a potential deal.
What Happened: As reported by The New York Times on Tuesday, the merger discussions between Paramount and Skydance were halted due to the inability of both parties to agree on terms.
This development throws a wrench in the plans to merge Paramount, the parent company of CBS, MTV, and Nickelodeon, with Skydance, the burgeoning movie studio behind “Top Gun: Maverick.”
The final stages of negotiations between Skydance, Paramount, and its parent company, National Amusements, hit several roadblocks last week. Paramount’s controlling shareholder, Shari Redstone, demanded that Skydance provide some legal protection for the deal to protect against potential investor lawsuits, according to the Times. A committee of Paramount’s board members evaluating the plan also dismissed a public relations firm it had been using.
The negotiations started late last year and continued until this week. Throughout that time, they were marked by leaks and prolonged discussions, reflecting the high level of tension between the two sides.
“Sometimes the game ends with a goal-line stand,” Rich Greenfield, an analyst for LightShed Partners, told the NY Times.
With the termination of the merger talks, the future of Paramount is now in question. The company has been seeking a deal in the face of significant challenges to the traditional media industry, including the decline of traditional television.
Its share price has also seen a significant drop in recent years, as investors have grown increasingly doubtful about the company’s prospects.
Why It Matters: The merger had the Hollywood industry buzzing for months.
Prior to its collapse, Paramount’s controlling company, National Amusements, had attracted interest from former media executive Edgar Bronfman Jr., backed by Bain Capital, offering between $2 billion and $2.5 billion.
This interest emerged as Redstone was negotiating to sell a majority stake in National Amusements to Skydance Media.
Hollywood producer Steven Paul was also preparing a $3 billion offer for National Amusements. The termination of the merger talks could potentially open the door for these interested parties.
Read Next: Looking At Paramount Global’s Recent Unusual Options Activity
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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