Paramount’s special committee agrees to recommend Skydance deal, WSJ reports

Paramount’s special committee agrees to recommend Skydance deal, WSJ reports

(Reuters) – A special committee of Paramount Global’s board of directors has agreed to recommend a deal with Skydance Media, the Wall Street Journal reported on Friday, citing people familiar with the matter.

A possible deal could end months of speculation over the fate of the media giant. Reports of a takeover bid from Skydance Media and a consortium of Apollo Global Management and Sony Pictures, as well as another $30 billion offer from media entrepreneur Byron Allen, have rocked the stock for months.

The exodus of advertisers and cable cuts have damaged Paramount’s traditional TV business, which represents more than half of its revenue.

Media mogul Shari Redstone has received expressions of interest from at least two parties in purchasing all or part of her company National Amusements, which owns 77% of Paramount’s Class A voting stock, according to The report.

Hollywood producer Steven Paul, who is the chief executive of film studio Crystal Sky Pictures, has gathered financing to make a bid for National Amusements of around $3 billion, the report added.

A spokesperson for the special committee declined to comment and Crystal Sky Pictures did not immediately respond to a Reuters request for comment.

Exclusive negotiations between Paramount and Skydance ended in early May, Reuters reported, citing a person familiar with the matter, allowing the company to evaluate competing offers.

Skydance Media has submitted a sweetened offer for its proposed merger with Paramount, a person familiar with the matter told Reuters on Thursday.

The new deal would offer improved terms to Paramount’s voting and non-voting shareholders, and provide more liquidity, according to the source.

Redstone has not yet seen the terms of the latest Skydance offer, according to the WSJ report.

Analysts said investors could be disappointed by the deal’s initial terms that would see a buyout of Redstone’s majority stake by Skydance but leave Paramount as a public company.

(Reporting by Harshita Mary Varghese in Bengaluru; editing by Arun Koyyur, Shinjini Ganguli and Maju Samuel)

Source Reference

Latest stories