Paramount Global Approves Merger with Skydance Media, Transforming Entertainment Industry

By Madz Dizon

Jul 07, 2024 05:47 PM EDT

Paramount Global Approves Merger with Skydance Media, Transforming Entertainment Industry
The Paramount Global Paramount+ streaming service logo is displayed on the Sphere arena in Las Vegas, Nevada on February 7, 2024.
(Photo : PATRICK T. FALLON/AFP via Getty Images)

After a period of negotiations, a special committee of Paramount Global's directors has given the green light to a merger with Skydance Media, led by David Ellison. This deal is expected to have a significant impact on the entertainment industry.

Skydance Media Set to Acquire Paramount's Controlling Stake  

According to Bloomberg's source, the agreement is anticipated to be finalized on Sunday, July 7, and an official announcement is likely to be made by Monday, July 8. Skydance is reportedly set to acquire National Amusements, the holding company that currently holds a controlling stake of 77 percent of voting shares in Paramount.

For over six months, Skydance, the production company behind blockbuster franchises such as Mission: Impossible, Star Trek, and Top Gun, has been actively pursuing the acquisition of Paramount, the parent company of CBS, MTV, Nickelodeon, and Comedy Central.

The exclusivity period ended the following month, as the negotiations came to a halt when a bidding group, including Sony and a private-equity firm, started showing interest. According to later reports, the talks were ended by Shari Redstone, the leader of National Amusements.

READ NEXT: Paramount Global in Merger Talks to Integrate Paramount+ with Rival Streaming Platform 

Paramount and Skydance Reach $1.75-Billion Preliminary Deal  

Skydance returned to the negotiating table and swiftly reached an agreement on a preliminary deal. Sources revealed that the revived negotiations involved a substantial $1.75-billion deal, which also included a 45-day "go-shop period" for Paramount to explore potential alternative offers.

Paramount, a once-revered force in the media industry, has faced significant challenges in keeping up with the changing landscape of streaming. Shareholders have expressed concern as the company's market value has sharply declined by over 50% since 2019.

However, there were concerns among certain shareholders that the previous agreement with Skydance showed a bias towards Redstone and her family, which ultimately became a point of contention during the negotiations. According to Reuters, Redstone, who was initially in favor of the deal, ultimately put an end to it when Skydance made changes to their offer that would primarily benefit non-family shareholders.

READ MORE: Former CBS Anchor Jeff Vaughn Files Discrimination Lawsuit Against Network 

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