Paramount finalizes merger pact with Skydance
By Mike Murphy
The end of Paramount Global's long and windy road to a sale appeared at hand as the companies and a key shareholder backed Skydance Media's buyout bid.
A special committee of Paramount's board members voted in favor of a merger with Skydance, the studio run by David Ellison.
As a first step to the deal, Skydance would buy National Amusements, Shari Redstone's company that controls Paramount. Then, Skydance and Paramount would merge.
"In 1987, my father, Sumner Redstone, acquired Viacom and began assembling and growing the businesses today known as Paramount Global. He had a vision that 'content was king' and was always committed to delivering great content for all audiences around the world," said Redstone in a statement. "Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king."
"We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come," said Ellison.
Paramount Class B (PARA) shareholders are to set receive either $15 per share in cash or one share of the new company. That's a 48% premium to the July 1 price.
Paramount Class B shares rose 4% to $12.34 in premarket trade.
The Class A shareholders (PARAA) are due to receive $23 in cash per share, or 1.5333 Class B shares.
That class rallied 7% to $22 in premarket trade. When the deal closes, the Ellison family as well as RedBird Capital Partners, which is a partner on the buyout, will own 70% of the company.
Rumors of a deal for Paramount have been percolating for months. Skydance was apparently close to sealing a deal in June but talks broke off at the last minute, only to be revived weeks later.
Paramount is home to CBS, cable networks including MTV and Comedy Central, the namesake movie studio and the Paramount+ streaming service.
Skydance is an independent production company run by Ellison, son of Oracle Corp. founder Larry Ellison. Skydance has previously partnered with Paramount on a number of movies, including "Top Gun: Maverick" and "Mission: Impossible - Dead Reckoning."
- Steve Goldstein contributed to this report
-Mike Murphy
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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07-08-24 0446ET
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