Skydance Sweetens Offer For Paramount Global (2024)
David Ellison‘s Skydance has sweetened its offer to acquire Paramount Global, Deadline has learned, in an attempt to make it more palatable to the company’s Class B stockholders after they trashed the outlines of a previous deal and threatened to sue.
Ellison’s original offer was to buy out Par’s controlling shareholder Shari Redstone for a significant premium, resulting in a windfall for her, and then merge Skydance into Paramount keeping the combined company public. Stockholders wanted to be bought out at a premium as well.
Skydance, backed by Oracle co-founder Larry Ellison and Gerry Cardinale’s RedBird Capital, sweetened the offer once late last month — offering to buy out a certain number of shares from stockholders other than Redstone — as an exclusive monthlong negotiating period with Par ended. But it wasn’t enough to woo holders of the Class B non-voting stock, who are the majority of shareholders, or even some of the A.
NewsChris Hemsworth In Talks To Star In Paramount's 'Transformers/G.I. Joe' Crossover Movie
The parameters of the revised bid couldn’t be learned immediately but Deadline understands that Skydance is putting more money in and restructuring the deal to make it more palatable to the Class B folks.
As the Skydance exclusive talks ended with no deal, Sony jumped in for a $26 billion cash bid with private equity giant Apollo, which was later downsized in some fashion as Sony signed a non-disclosure agreement with Par about two weeks ago that would let SPE access Par’s books and talks to start in earnest. Those conversations were not exclusive, however, and Skydance remained very much in the mix, continuing to talk with Par as well.
The issue for Sony is not shareholders but regulators. Foreign ownership rules likely prevent Sony from owning CBS broadcast assets, which is probably why its offer became more targeted. But it might not be a cakewalk to merge two major studios either. Skydance is safer, more certain on the regulatory front and wouldn’t require a prolonged review amid possible opposition that can drag a deal out and sometimes end without one.
All offers are being evaluated by a special committee of Paramount’s board of directors. Three on that committee — Dawn Ostroff, Nicole Seligman and Frederick Terrell — will formally exit the board at of the company’s annual shareholder meeting next Tuesday, not standing for re-election. Another board member, Robert Kieger, will also be moving on. Par announced the upcoming departures — which will leave it with a greatly downsized board — earlier this year to widespread speculation on what it meant for a deal.
Par hasn’t said whether the three had continued to serve actively on the committee after their pending departures were announced, or what the committee composition is now or will be after the meeting where shareholders vote for directors among other issues on the agenda and can ask questions. There’s speculation the committee maybe needed to wrap up and present options by the annual meeting but that may not be the case. The committee in any case is just there for a recommendation, with Redstone the decider and, some feel, a wildcard.
Says one source with knowledge of the dealings, “At the end of the day, whatever the committee recommends to Shari, it’s up to her to decide. A deal’s not a deal without her.”
Hollywood insiders favor a Skydance deal over a Sony/Apollo takeover of Paramount Global. The reduction of a major studio strikes fear throughout the exhibition sector that fewer event films would exist in the long run, the sector currently weathering the aftermath of Covid, two strikes and a Disney-Fox merger which has reduced the supply of movies at multiplexes.
Skydance’s last offer included a sweetened $3 billion cash injection — up by at least $1 billion contemplated previously. What’s key as a priority is Paramount holding enough cash on its balance sheet for an investment grade status with big ratings agencies. It included some premium sweetener for a percentage of non-voting Class B shares. Redstone would take an unspecified haircut compared with the initial offer terms where Skydance had proposed buying out Redstone’s controlling Class A voting shares and some other assets for about $2 billion.
Paramount’s all stock acquisition of Skydance, planned as a second step in the transaction, valued the Ellison studio at about $5 billion, which also irked investors who called it too high and said it would dilute their holdings. It’s not clear if that part of the offer has changed.
Paramount would then acquire Skydance in an all-stock transaction worth about $5 billion. Some major investors balked at that deal, which was perceived as favoring Redstone
Redstone
Shari Ellin Redstone (born April 14, 1954) is an American media executive. She is the non-executive chairwoman of Paramount Global (formerly known as ViacomCBS) and president of National Amusem*nts, and a former vice chair of CBS Corporation and Viacom.
Skydance would buy out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion, leaving the holders with equity in the new company. Skydance and RedBird would also contribute $1.5 billion in cash to Paramount's balance sheet to help reduce debt.
Early this month, Sony and Apollo sent Paramount a nonbinding expression of interest in acquiring the company for $26 billion. The two had been seeking to buy Paramount for its studio and then sell off other parts of its empire, which includes CBS, cable channels like MTV and the Paramount Plus streaming service.
$59.99*/year. Stream over 40,000 episodes and movies with limited commercial interruptions for $5.99*/month or save over 16%** off your monthly price with an annual plan for $59.99*/year.
Skydance Media has revised its offer to buy Shari Redstone's firm National Amusem*nts and merge with Paramount Global, giving Paramount's nonvoting shareholders the option to cash out at a premium, The Wall Street Journal reported .
Paramount Pictures Corporation, doing business as Paramount Pictures (also known simply as Paramount) is an American film and television production and distribution company and the namesake subsidiary of Paramount Global.
Sony Pictures and Apollo Global Management have made a $26 billion all-cash offer to buy Paramount Global, the parent company of CBS, MTV, and Paramount Pictures, according to a new report.
Apollo and Sony made a $26 billion all-cash offer to buy Paramount, WSJ reportd. The Apollo bid is led by the 37-year-old partner behind a $760 million deal for Legendary Entertainment. Rival bidder, film studio Skydance, has been trying to win over Paramount for months.
With Paramount in the fold, Sony could open a newfront in the streaming wars that puts its cross-entertainment strategy at the front and centre. Content IP has remained a key priority for Sony's strategic investments over the years, and the Paramount bid is no different.
The Paramount+ Essential plan subscription is now included with Walmart+ monthly and annual memberships at no additional cost to you. Walmart+ members have the option to switch to a Paramount+ with SHOWTIME® plan for an additional cost, after registering for the Essential plan through Walmart+.
The best deal for signing up for Paramount Plus With Showtime is through a special Prime Video discount. From now until Jan.1, 2024, Prime Video members can add Paramount Plus With Showtime to their account for just $1.99/month for two months. That's two full months of Paramount Plus With Showtime for just $4!
What's the difference between Paramount Plus and Paramount Network? Paramount Plus and Paramount Network are different things. Paramount+ (formerly CBS All Access) is an on-demand streaming service, while Paramount Network (formerly Spike TV) is a cable/satellite TV channel. Both are owned by ViacomCBS.
June 2 (Reuters) - Skydance Media last week revised its offer for Paramount Global (PARA. O) , opens new tab to buy up to a certain number of non-voting Paramount shares at $15 each, the Wall Street Journal reported on Sunday citing people familiar with the matter.
His backers include RedBird Capital Partners and KKR & Co. A special committee of Paramount board members has recommended Ellison's latest proposal, which includes an option for non-voting shareholders to cash out a portion of their stock for about $15 per share.
What is Paramount+? Paramount+ is a streaming service with blockbusters, new originals, exclusive series and hit shows. It's available to Sky TV customers with Sky Cinema at no extra cost (normally £6.99 a month).
Paramount Plus is a subscription streaming service from ViacomCBS. It includes select programs from CBS, BET, Comedy Central, Nickelodeon, MTV, The Smithsonian Channel, and more. You also get 24/7 news programming and next-day access to news programs like "60 Minutes" and "Face the Nation."
Hobby: Flower arranging, Yo-yoing, Tai chi, Rowing, Macrame, Urban exploration, Knife making
Introduction: My name is Madonna Wisozk, I am a attractive, healthy, thoughtful, faithful, open, vivacious, zany person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
