Tuesday, April 30, 2024

Skydance Sweetens Offer To Appease Shareholders


Skydance Media, in talks to merge with Paramount Global, has presented a revised offer to address concerns raised by minority shareholders. Here are the key details:

Revised Offer: Cash Infusion: Skydance’s new proposal includes a $3 billion cash injection into Paramount.

Sweetener for Non-Voting Class B Shares: In addition to the cash infusion, a premium sweetener is offered for a percentage of non-voting Class B shares. The two-step deal involves Skydance acquiring Paramount through controlling shareholder Shari Redstone’s stake in National Amusements (which owns 77% of Paramount voting stock). The second step would merge Skydance and Paramount, creating a combined company valued at approximately $5 billion.

Shareholder Concerns: Several investors, including Matrix Asset Advisors, Ariel Investments, Aspen Sky Trust, and Blackwood Capital Management, expressed opposition to the initial Skydance deal. They argued that the previous bid prioritized Redstone’s interests over other Paramount shareholders and would dilute their holdings.

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