Paramount Global (NASDAQ: PARA) Agrees to Skydance Media Takeover in $8 Billion Deal
In a groundbreaking move, Paramount Global has announced its board's unanimous approval of a takeover offer by Skydance Media, marking the beginning of a new era for the studio. This deal, valued at over $8 billion, will see Paramount's class A stockholders receiving $23 per share in cash or stock, while class B shareholders will receive $15 per share.
The agreement includes a $4.2 billion investment in Paramount by a group led by the Ellison Family and Redbird Capital, as well as $1.5 billion of primary capital for the newly formed entity, New Paramount. Following the merger, Skydance will hold approximately 70% of New Paramount's outstanding shares, acquiring National Amusements' majority stake in Paramount and gaining access to Paramount's studio assets, streaming service Paramount+, and popular channels like Nickelodeon, MTV, and Comedy Central.
Paramount Global chair Shari Redstone expressed optimism about the deal, stating, "Our hope is that the Skydance transaction will enable Paramount's continued success in this rapidly changing environment." The new entity will be led by Skydance's David Ellison as chairman and CEO, with former NBC Universal CEO Jeff Shell serving as president.
This strategic move is set to reshape the entertainment industry landscape, creating a powerhouse in the market. Investors should keep a close eye on Paramount Global and Skydance Media as they navigate this new chapter in their corporate journey. Stay tuned for more updates on this historic deal and its potential impact on the financial markets.