Report: Skydance Submits Revised Offer For Paramount Global

Skydance Media has reportedly made a revised offer to acquire Paramount Global, and part of this offer includes a cash-out option for Paramount’s shareholders at $15 per share. According to The Wrap, the offer is part of a package that was recommended on Friday by Paramount’s independent special committee over a $26 billion all-cash bid made by Sony and private equity firm Apollo Global Management.

Here are the key details:

Revised Offer: Skydance Media, led by David Ellison, has put forth a new proposal to acquire Paramount Global. This revised offer allows non-voting shareholders of Paramount to cash out their shares at a premium price of $15 each.

Background: Initially, Skydance had a two-step plan. First, they offered around $2 billion to acquire National Amusements, which owns a significant portion of Paramount’s voting and common stock. The second step involved merging Skydance with Paramount to create a combined company valued at approximately $5 billion.

Minority Shareholder Concerns: Paramount’s minority shareholders expressed opposition to Skydance’s bid, arguing that it prioritized Shari Redstone (owner of National Amusements) at the expense of other investors. The cash-out option is an attempt to address these concerns.

Competing Offers: In addition to Skydance, Sony Pictures Entertainment and Apollo Global Management jointly submitted a $26 billion all-cash offer for Paramount. Sony would take a majority stake with operational control, while Apollo would hold a minority stake. Both companies are reportedly considering revising their offer1.

Independent Committee Recommendation: Paramount’s independent special committee approved Skydance’s package over the Sony-Apollo offer. However, the final decision rests with the shareholders.