Paramount: Improved Skydance Deal Looks Even Better Than We Expected

Last week’s reporting on the Skydance-Paramount transaction, which we highlighted in our July 3 note, was largely consistent with the deal that Paramount’s board approved yesterday. Although we still haven’t seen sufficient detail on Skydance’s business to offer a detailed take on valuation, the information we’ve gotten makes us like the deal even more for current Paramount shareholders. We are maintaining our $20 per share fair value estimate. Unless further disclosure leads us to believe Skydance’s pro forma estimates are materially off base, we don’t intend to adjust our fair value estimate in light of this deal.