Decision Time Approaches For Redstone

Shari Redstone, the controlling shareholder of Paramount Global in coming days will weigh whether to approve a merger of the entertainment company with Skydance Media after a special committee of its board agreed to recommend that deal, or pursue a sale of her family’s holding company at a premium, reports The Wall Street Journal citing people familiar with the situation.

Redstone’s National Amusements owns 77% of the voting shares of Paramount, as well as a movie-theater chain. She has been a champion of a potential Paramount merger with Skydance, a production company whose CEO is David Ellison, the son of billionaire Oracle co-founder Larry Ellison.

But with that deal within reach, Redstone is weighing the alternative path of only selling National Amusements, which would transfer control of Paramount to someone else but may not lead to a merger with another entertainment company. Redstone has yet to see the terms of the latest Skydance offer, according to people close to the situation.

In recent weeks, she has received expressions of interest from at least two parties in buying all or part of National Amusements. Steven Paul, a Hollywood producer, has been lining up financing to make an offer for National Amusements of around $3 billion, people familiar with the matter said. At least one other investor group has expressed interest in buying National Amusements, they said.

Paramount, which owns the renowned movie studio, CBS and cable networks such as Nickelodeon and Comedy Central, has been controlled by the Redstone family for nearly four decades. Making the right decision is personal for Redstone, as she wants to protect her family’s legacy, people close to her have said. Critics of Redstone, including some investors, say she has pursued sale options without fully considering what is best for all shareholders.