Report: Deal Talks Between Paramount, Skydance Heat Up

Paramount, home to one of Hollywood’s most storied movie studios, as well as CBS and cable networks like Nickelodeon, is discussing entering into exclusive talks with the media company Skydance for a potential deal. This development comes after months of uncertainty surrounding the process. While the two sides have not yet agreed to exclusivity, other investors are still pursuing Paramount, according to The NY Times.

Apollo Global Management, an investment firm managing over $500 billion, has submitted an $11 billion offer to acquire the Paramount movie studio. However, Paramount’s board of directors seeks a deal for the entire company, including its cable channels and CBS, rather than in pieces. Byron Allen, whose Entertainment Studios owns the Weather Channel, has also expressed interest in acquiring Paramount.

Redstone

Shari Redstone, the controlling shareholder of Paramount, began negotiating with Skydance last year to sell her stake in the company. She controls Paramount through National Amusements, a holding company that owns her voting stock in Paramount. Despite holding off on a sale for years, Ms. Redstone bet on the company’s fortunes improving as its flagship streaming service, Paramount+, gained momentum.

The terms of the deal being discussed would involve Skydance buying National Amusements and merging with Paramount. Approval from Paramount’s board is crucial, and they have been evaluating options with the help of advisers. Late last month, David Ellison, the tech scion who founded Skydance, met with Paramount’s board committee to discuss his vision for the deal. Skydance, founded in 2010, is best known for shepherding blockbusters for Paramount, including movies in the “Mission: Impossible” and “Top Gun” franchises.

Paramount’s stock has faced challenges, falling 18 percent since the start of the year. The company currently trades at a steep discount compared to the combined value of Viacom and CBS, which merged to form Paramount in 2019. While Paramount+ is still operating at a loss, its losses have slowed, and it continues to attract subscribers. The potential synergies between Paramount and Skydance could reshape the Hollywood landscape and set new trends for future collaborations in the industry.