Photo by Hannah Wernecke on Unsplash
Paramount and Skydance Forge New Merger Agreement
July 3, 2024
Paramount Global and Skydance Media have finalized a merger agreement after a brief interruption in their negotiations, multiple U.S. media sites reported on Tuesday. This development comes just a few weeks after discussions were halted in June.
The terms of the merger are now under review by a special committee of Paramount board members assigned to explore strategic options for the company. Notably, there is a 45-day “go-shop period” during which other potential bidders for Paramount can submit offers, according to Deadline.
Paramount Global, formerly known as ViacomCBS, also operates Comedy Central, as well as Paramount’s film and television studios. Its streaming platform, launched in March 2021, boasted 71 million subscribers by late March. This merger positions Paramount and Skydance to strengthen their foothold in the competitive entertainment industry.
The initial talks between Paramount and Skydance began in early April, following Paramount’s rejection of an $11 billion takeover bid from Apollo Global Management. The negotiations, however, hit a roadblock in mid-June when National Amusements, Paramount’s controlling shareholder led by Shari Redstone, walked away from the table. Despite this setback, the parties have resumed discussions, as reported by The Wall Street Journal, The New York Times, and CNBC.
As part of the agreement, Skydance Media, privately held and led by David Ellison, son of Oracle co-founder Larry Ellison, will acquire National Amusements for $1.75 billion. This acquisition is a precursor to the full merger with Paramount. Some reports suggest that the total value of the deal could reach $2.2 billion.
The news of the merger has positively impacted Paramount’s market performance, with shares rising 7.93% in after-hours trading. This merger signals a significant move for Paramount, often seen as the smaller player among the television and streaming giants. The company, which operates CBS, MTV, Nickelodeon, and other media properties, has been an acquisition target for months. Netflix, among others, has shown interest.
Recent News
Samsung Hits Three-Year High as AI Demand Boosts Chip Business
Samsung Electronics has reached a three-year high in its share value, driven by a robust forecast for its second-quarter profits following a surge in global demand for advanced computer chips.
Mark Zuckerberg Goes Viral With July 4 Video
Mark Zuckerberg went viral with a video celebrating the Fourth of July, symbolizing what appears to be his achievement of the American dream.
Caesar Salad Turns 100: Its Secret History That Turned Into Big Business for Restaurants
The crunchy, salty concoction hails from Tijuana, Mexico.
Japan’s Stock Market Soars
Japan’s stock markets have soared in 2024, with the Nikkei 225 and the Topix hitting new all-time highs.