Skydance in exclusive talks to take control of Paramount

Source: Alamy.com

US film and TV studio Skydance has entered into exclusive talks to take control of Paramount Global via the acquisition of Shari Redstone’s National Amusements (NAI), according to press reports.

According to the Wall Street Journal, which first reported the news, and the FT, citing unnamed sources, David Ellison’s Skydance entered into exclusive talks with Paramount after the latter rejected a bid from private equity outfit Apollo.

As previously reported, Skydance is aiming to take over NAI, which holds 77% of Paramount’s voting stock, rather than Paramount itself in the first instance. According to the FT, Ellison now has 30 days to reach a deal.

The agreement to enter into exclusive talks came after Paramount reportedly rebuffed a bid by Apollo Global Management. The reported US$26 billion bid followed an earlier approach when Apollo offered US$11 billion to buy Paramount’s film studio alone, which was also rejected by Paramount. The value of Apollo’s latest bid included debt. Paramount’s debt currently stands at over US$16 billion.

Redstone is not a member of the special board committee set up by Paramount to consider bids for the company.

Paramount Global had a market cap of around US$9.26 billion when the market closed yesterday, with its stock price rising sharply that morning amid reports of the Skydance deal.

Takeover speculation

Paramount has been the object of media speculation about a potential merger or takeover for months. In February it was reported that Warner Bros. Discovery had decided not to proceed with a potential acquisition. CNBC, citing unnamed sources, reported that WBD had decided not to move forwards after several months of mulling a potential deal, leaving Skydance Media as the most likely contender for any agreement.

Commenting on the company’s full-year results, Paramount CEO Bob Bakish indicated at the time that the studio was concentrating on making progress as a standalone company, stating that he was focused “on returning the company to sustainable profitable growth in 2024 and beyond and, regardless of current market sentiment”.