From Investing.com: 2024-04-03 22:46:03

Paramount Global’s board has entered exclusive merger talks with Skydance Media, bypassing a $26 billion offer from Apollo Global Management. The deal could result in ending Shari Redstone’s control of the media empire. Paramount shares surged nearly 15% on news of the negotiations with Skydance, who seeks to buy National Amusements.

Skydance, led by David Ellison, is aiming to purchase National Amusements, the Redstone family’s holding company. This acquisition is contingent upon merging Skydance and Paramount Global, a move that could lead to considerable consolidation in the media industry. The potential deal comes amid declines in traditional television businesses and labor strikes in Hollywood.

Apollo Global Management offered $26 billion for Paramount Global, a significant increase from an earlier bid this year of $11 billion. This offer, described as “extremely preliminary,” was made in an attempt to stall any deal with Skydance. Paramount Global’s value has plummeted over $16 billion since the CBS-Viacom reunion in 2019, with market capitalization falling below $10 billion in January.

Ellison had previously expressed interest in an all-cash bid to acquire National Amusements, showcasing the intense competition for control over Paramount Global. The special committee of Paramount’s board, aided by advisors Centerview Partners and Cravath, Swaine & Moore, is now in exclusive talks with Skydance for a potential merger deal. Both Skydance and Paramount declined to comment on the matter.



Read more at Investing.com: Paramount to enter into exclusive merger talks with Skydance, source says By Reuters