Talk Clock Ticking Between Skydance, National Amusements

Skydance Media, led by CEO David Ellison, is making waves in the world of sports media. They are eyeing a significant deal that could reshape the landscape, and it involves CBS parent company Paramount Global.

• Here’s the scoop: David Ellison aims to acquire National Amusements, the company controlled by the Shari Redstone family, which in turn oversees CBS parent Paramount Global. The proposed transaction is a two-stage affair:
• Cash for Redstone: In the first stage, Redstone would receive over $2 billion in cash.
• All-Stock Deal: The second stage involves Paramount Global acquiring Skydance in an all-stock deal valued at approximately $5 billion. If this deal goes through, David Ellison is likely to lead the new combined entity.

The negotiations are ongoing, but both parties have agreed to a month of exclusive talks, hinting at the possibility of a definitive agreement1. This development comes shortly after Paramount Global’s earlier merger discussions with TNT Sports parent Warner Bros. Discovery fell through.

Why the Interest? Since the passing of Shari Redstone’s late father, Sumner, in 2020, Paramount Global’s stock has declined significantly—by nearly two-thirds. This puts pressure on Redstone to enhance shareholder value. S&P Global Ratings even downgraded the company’s debt to junk status last month.

If the deal materializes, it would consolidate a media powerhouse under one roof. Paramount Global holds rights to the NFL, half of the men’s March Madness, top college conferences, and golf’s Masters, among other assets. Meanwhile, Skydance boasts a fast-growing documentary unit, responsible for popular projects like “Kelce” on Amazon Prime Video. Notably, the NFL itself is an investor in Skydance Media.

Financial Backing and Leadership Changes Skydance is expected to receive financial support for the Paramount Global deal from Larry Ellison, RedBird Capital Partners, and KKR. Additionally, Jeff Shell, former NBCUniversal CEO and current RedBird chairman of sports and media, may assume a senior leadership role in the combined operation if the deal goes through.