Soap opera Paramount Global And Skydance Media came to an end. After several months of negotiations, the two companies agreed once and for all to merge. Shari RedstoneThe president of the legendary Hollywood studio, sold the company to a consortium led by Skydance. David Ellison at the helm, as well as the investment fund RedBird Capital. Pending approval from the Federal Trade Commission (FTC), the move is now official.
This is stated in a statement released by both groups and published by a number of American media outlets. “Given the changes in the industry, we want to strengthen Paramount for the future while ensuring that content remains king. We hope that the deal with Skydance will ensure Paramount’s continued success in this rapidly changing environment,” he explained. RedstoneThe businesswoman headed the company after her father’s death. Sumner Redstonein 2020.
“As a long-standing production partner of Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources needed to take it to its next stage of growth. We believe in Paramount and always will,” he adds. RedstoneSkydance and its partners are investing more than $8 billion to buy Paramount.
Of that, $2.4 billion would go toward acquiring National Amusements, the regional theater chain that Sumner Redstone built into an entertainment giant by buying Viacom, Paramount, and CBS. Another $4.5 billion from Skydance would go toward publicly traded Class A and Class B shares, adding another $1.5 billion to Paramount’s balance sheet. In short, an acquisition that, if completed and approved by the Federal Trade Commission, would shake up the entire audiovisual industry.
Complex purchase
Skydance began negotiations with Paramount late last year, but multiple rounds of talks have failed to produce a deal. Last month, Redstone rejected the existing agreement at the last minute, which complicated the situation even more. Moreover, Skydance was not the only one interested in acquiring the company. And Paramount received offers from groups such as Warner Bros. Discovery, Sony Pictures, and investment fund Apollo Global Management. Despite everything, they managed to come to an agreement with Skydance.
The sale of Paramount, CBS, and the former Viacom assets will leave the Redstone family for the first time in decades, a move that Skydance says is worth $28 billion. A huge sum considering Skydance itself, founded in 2010, is valued at $4.75 billion. If they get the final green light from the Federal Trade Commission, the merger would go into effect in the first half of 2025.
The company will also acquire the Paramount film and television studios, as well as the Paramount+ platform, the CBS television company, and the cable television channels Nickelodeon, MTV, and Comedy Central. Allison. Of course, there is a caveat. And under the agreement, Paramount Global has the right to seek equal or better offers for 45 days before the finalization of the agreement with Skydance.
New organizational structure
But if that path doesn’t materialize and the deal closes, the deal would leave Skydance with 70% of Paramount’s equity and ownership of all of its Class A shares, because Skydance would not only buy out the equity. Redstone through National Amusements, but will also allow other Class A and Class B shareholders to sell their shares at $23 and $15 per share, respectively.
The new group’s plan came to fruition because Allison becomes the company’s chief executive officer (CEO). For his part, the former NBCUniversal CEO Jeff Shellwho currently works at RedBird, will be the permanent president. And while National Amusements owns only about 10% of Paramount’s shares, it controls nearly 80% of its voting shares, essentially giving it control of the company. Control will be exercised by Skydance, barring a surprise in the coming weeks.
In this case, it is unknown whether Paramount will continue to be called that or whether it will transition under a new corporate name as the parent company of Skydance. Allison promised to revitalize the studio, which has faced a series of problems in recent years, even leading to the layoffs of more than 800 employees. “We are committed to reinvigorating the business and strengthening Paramount with modern technology, new leadership, and a creative discipline aimed at enriching future generations,” he said. Allison.
Source: Hiper Textual
