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David Ellison’s Skydance Media Reportedly Inks New Preliminary Deal to Buy Paramount Global Holding Company National Amusements
July 2, 2024
David Ellison’s Skydance Media has reportedly inked a new preliminary agreement with National Amusements, the Shari Redstone-owned holding company that owns almost 77% of Paramount’s stock, to acquire a majority stake in Paramount Global.
The tentative deal would have Santa Monica, Calif.-based Skydance pay $1.75 billion to National Amusements and then merge with Paramount, dependent upon approval of a special committee set up by the Paramount’s board, according to multiple media reports citing sources familiar with the situation.
The new offer, which is $50 million bigger than the previous deal between Skydance and NAI that fell apart after Redstone walked away, would include a 45-day window enabling third-parties to submit counter offers.
The new offer also does not mandate approval by non-Redstone shareholders, which the previous deal did. Citing sources, David Faber with CNBC said the deal could be completed as early as July 5.
Regardless, Redstone’s attempt to sell Paramount Global, which owns namesake studio Paramount Pictures and the Paramount+ streaming service, in addition to CBS, Showtime, Nickelodeon, BET, Comedy Central and MTV, has been tenuous, resulting in the departure of CEO Bob Bakish, four board members, and numerous executives.
Redstone established the Office of the CEO, consisting of senior executives George Cheeks, CEO of CBS; Chris McCarthy, CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks; and Brian Robbins, CEO of Paramount Pictures and Nickelodeon, to run the company along with CFO Naveen Chopra.
The management team has promised to cut $500 million in operating costs, and reportedly is looking to merge money-losing Paramount+ with a third-party platform.
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