Paramount and Skydance set to merge after reaching agreement

Paramount and Skydance agreed to merge. The deal needs approval from Paramount's main owner, Shari Redstone. She owns National Amusements, which has 77% of Paramount's class A shares. The agreement came after talks and a rival offer from Apollo Global Management and Sony Pictures. National Amusements is reviewing the financial terms of the deal. Skydance and RedBird will give $1.5 billion to Paramount to reduce its debt. After the merger, Skydance and RedBird will own two-thirds of Paramount, and class B shareholders will own the rest. The deal doesn't need a shareholder vote. The deal is worth $8 billion, up from the previous $5 billion offer. Bob Bakish left as CEO in April, and now Paramount is led by three executives. In case Paramount investors sue over the merger, who will defend the deal in court? National Amusements wants Skydance to provide legal protection in case of a lawsuit. This is a crucial term in the deal. Some Paramount shareholders are against the merger, saying it benefits Ms. Redstone over other investors. A special committee of Paramount's board supports the deal with Skydance. A shareholder vote and a "go-shop" period could protect Paramount and National Amusements from lawsuits, but it might delay the deal.