🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Skydance Media revives deal talks, eyes merger with Paramount Global

Published 02/07/2024, 23:44
© Reuters
PARA
-
PARAA
-

Investing.com - Skydance Media, led by David Ellison, son of Oracle (NYSE:ORCL) co-founder Larry Ellison, is reportedly close to finalizing a deal to acquire National Amusements, owned by Shari Redstone's family.

The proposed agreement also includes a merger with Paramount Global (NASDAQ:PARA), whose shares surged 9.8% after-hours.

The preliminary agreement comes after a previous round of negotiations fell through last month. The new deal, if approved, would see Skydance pay $1.75 billion for National Amusements. The companies have also agreed to a 45-day "go-shop period," during which other potential bidders for Paramount can submit their offers.

Unlike in the previous round of negotiations, National Amusements is no longer insisting that the Paramount merger must be approved by a majority of non-Redstone shareholders. However, the proposed terms of the merger must receive approval from a special committee of Paramount's board.

Skydance Media's pursuit of Paramount has been ongoing for several months, marked by a complex deal-making process that has seen intermittent progress.

Redstone's decision to call off discussions to sell her controlling stake in Paramount to Skydance last month had caught many in Hollywood off guard.

Paramount, which owns CBS, MTV, Nickelodeon, and its namesake film studio, has been grappling with a declining cable business, a significant debt burden, and the expensive expansion of its streaming service.

Amid these challenges, Paramount Global Class B (NASDAQ:PARA) shares closed at $10.72 on Tuesday, marking a nearly 26% decrease since the start of the year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.