From CNBC: 2024-06-11 18:08:07

National Amusements has ceased discussions with Skydance for a proposed merger with Paramount Global. This comes after National Amusements, owned by Shari Redstone, initially agreed to terms with a consortium including Skydance, RedBird Capital, and KKR. Paramount shares dropped nearly 8% following the news.

National Amusements released a statement saying they couldn’t agree on terms with Skydance for the acquisition of a controlling stake in NAI. Despite the end of talks, NAI praised Skydance for their work and expressed support for Paramount’s strategic plan executed by the Office of the CEO.

A representative from NAI mentioned that economic terms were agreed upon, but other outstanding terms led to the breakdown of the deal with Skydance. The Special Committee of Paramount’s Board of Directors confirmed that no vote was taken on the potential transaction.

The about-face on the proposed merger with Skydance came shortly after talks had advanced, and just after Paramount’s annual shareholder meeting. Paramount’s current leadership team outlined plans to explore streaming joint venture opportunities, divest noncore assets, and reduce costs.

Shari Redstone, the controlling force behind Paramount, favored keeping the company together when another potential buyer, Apollo Global Management and Sony, expressed interest. The now-ended deal with Skydance would have included Skydance buying nearly 50% of class B Paramount shares for $15 each, totaling $4.5 billion.

The plan presented by Paramount’s leadership focused on debt reduction to regain an investment-grade rating, aiming to offset the company’s roughly $14.6 billion in long-term debt. The proposed deal with Skydance was valued at $8 billion, aimed at improving Paramount’s financial standing.



Read more at CNBC: National Amusements stops Skydance talks on Paramount