Skydance and National Amusements finalize Paramount merger deal as stock prices rise

In a recent development, David Ellison's Skydance has entered a preliminary agreement with Shari Redstone's National Amusements to merge with Paramount, reviving a deal that had previously fallen through. The controlling shareholder, National Amusements, has passed the deal to Paramount's special committee for review and voting. Paramount's shares saw a significant surge of up to 9% following this news. The resurrected deal involves Redstone receiving a reduced consideration of $1.75 billion, while the financial terms remain largely unchanged with Skydance acquiring half of Paramount's controlling shares at $15 per share for $4.5 billion. The initial bid, which was terminated by Redstone in June, faced challenges as she felt Skydance had renegotiated the terms, leading to her being asked to accept a lower payment than previously agreed upon. This complex deal process had already resulted in the departure of CEO Bob Bakish earlier in the year, leaving a three-headed office of the CEO in charge. Notably, other interested parties, such as private equity firm Apollo and Sony, as well as Barry Diller, former Paramount executive and chairman of media conglomerate IAC, had also shown interest in acquiring Paramount. The news of Skydance and Paramount Global re-entering merger negotiations has sparked optimism in the market, with Paramount shares rising over 8%. The tentative deal involves Skydance purchasing National Amusements and merging with Paramount, as reported by The Wall Street Journal. The preliminary agreement was initially disclosed by The New York Times and the Wall Street Journal. The situation is evolving, and Paramount's special committee is currently evaluating the proposed deal, with further updates expected as the process unfolds. As the deal-making process progresses, stakeholders are closely monitoring the developments between Skydance, National Amusements, and Paramount. The potential merger has generated significant interest and speculation within the industry, with financial implications and strategic decisions at play. The outcome of the ongoing negotiations will likely have a substantial impact on the future direction and operations of Paramount and its affiliated entities.