Paramount, the renowned entertainment conglomerate, has embarked on exclusive merger discussions with Skydance, a prominent production company led by David Ellison.
It thereby sidelined a substantial $26 billion bid from Apollo, sources familiar with the matter revealed.
Skydance’s potential acquisition of Paramount could mark the end of Shari Redstone’s control over the media empire.
Paramount’s management excluded from decision-making as Skydance seeks approval for studio merger from an independent committee.
This decision effectively halts any ongoing negotiations with other potential bidders for a period of 30 days, signaling Paramount’s inclination towards striking a deal with Skydance over Apollo’s enticing offers.
Despite Apollo’s substantial bids, Paramount’s directors have opted to explore prospects with Skydance due to uncertainties surrounding Apollo’s financing arrangements.
Skydance’s potential acquisition of Paramount would signify a significant shift in control, potentially marking the end of Shari Redstone’s influence over her family’s media empire, Paramount Global.
Shari Redstone says she did not support a Viacom/CBS split | Reuters
National Amusements sale
Redstone, Paramount’s controlling shareholder, has been engaged in discussions with Ellison since late last year regarding the sale of National Amusements, her family’s media holding company, which commands a significant stake in Paramount.
While Redstone and Ellison have reached preliminary agreements, Skydance’s insistence on merging their studios necessitates a separate deal with Paramount, subject to approval by an independent committee of directors.
Paramount’s management, including CEO Bob Bakish, is reportedly excluded from the decision-making process.
The involvement of Ellison’s father, billionaire Larry Ellison, co-founder of Oracle, is anticipated to bolster Skydance’s financial capabilities in pursuing the merger.
Skydance, backed by investors such as RedBird Capital Partners, KKR, and Tencent, raised substantial capital in 2022, positioning it as a formidable player in the entertainment landscape.
Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.
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