Redstone and Skydance Reach Tentative Agreement for Paramount Stake, According to Bloomberg News

Redstone and Skydance Reach Tentative Agreement for Paramount Stake, According to Bloomberg News

(Adds information on Redstone, Paramount in paragraphs 2, 3; details on company value in paragraphs 4, 5)

April 3 (Reuters) – Shari Redstone, the majority shareholder of television giant Paramount Global, has reached an agreement in principle to sell her stake in the company to David Ellison’s Skydance Media, Bloomberg News reported on Wednesday, citing people close to the file.

Media mogul Redstone is reluctant to part ways with one of Hollywood’s most prestigious studios.

However, the deterioration of the global entertainment industry has erased more than $16 billion in value from the media company formed in the hard-fought 2019 merger of CBS and Viacom.

The company’s market capitalization was less than $10 billion in January.

Paramount could be worth $38.8 billion and its equity could be worth about $38 per share if the company’s networks, production assets and DTC businesses were sold individually, Citi estimated Dec. 11 after reports sales interest.

Paramount, Skydance and a spokesperson for Shari Redstone did not immediately respond to Reuters requests for comment.

Skydance is in exclusive talks with a panel of independent Paramount directors in a tentative deal to buy the Redstone family’s holding company, National Amusements, the report added.

In January, a source told Reuters that Skydance Media CEO David Ellison, son of Oracle co-founder Larry Ellison, was exploring an all-cash offer to acquire National Amusements.

National Amusements directly or indirectly owns 77% of the voting shares of Paramount. It controls CBS, cable networks Nickelodeon and Comedy Central and also owns 800 movie theaters in the United States. (Reporting by Mehnaz Yasmin in Bangalore; editing by Krishna Chandra Eluri and Maju Samuel)

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