Paramount Global in Talks to Acquire Skydance Media in a $5 Billion Deal
Paramount Global to Acquire Skydance Media in All-Stock Transaction
A recent report by the Wall Street Journal revealed that Paramount Global is in discussions to acquire the independent studio, Skydance Media, in an all-stock transaction valued at around $5 billion. National Amusements, the controlling entity of Paramount, is set to receive over $2 billion in cash as part of the deal’s initial phase.
Skydance to Infuse Cash into Paramount to Alleviate Debt
Additionally, Skydance is considering providing a significant cash infusion to Paramount to strengthen its financial position and assist in debt repayment. Paramount Pictures, the film studio under Paramount’s ownership, stands to benefit from this potential collaboration, as per sources cited by the Wall Street Journal.
Exclusive Merger Talks Favor Skydance Over Apollo Global Management
Following reports that members of Paramount’s board have agreed to exclusive merger discussions with Skydance Media, it appears that this partnership is preferred over a $26 billion offer from Apollo Global Management. This move could grant the combined entity greater flexibility in managing their franchises.
Skydance Led by David Ellison Eyes National Amusements Acquisition
David Ellison, spearheading Skydance Media and son of Oracle co-founder Larry Ellison, is leading the charge to acquire National Amusements, which holds a substantial stake in Paramount’s voting class stock. The potential sale is contingent on Ellison’s ability to merge Skydance with Paramount Global.
Shari Redstone’s Media Empire Control at Stake
If successful, the deal would mark the end of Shari Redstone’s control over the media empire established by her late father, Sumner Redstone. Skydance has secured 30 days of exclusive negotiations with Paramount, indicating the advanced stage of the discussions.
