David Ellison\u2019s Skydance\u00a0has reached a preliminary deal with Shari Redstone\u2019s National Amusements to merge with\u00a0Paramount, according to two people familiar with the matter, resurrecting a\u00a0deal which failed just weeks earlier.<\/p>\n
Controlling shareholder\u00a0National Amusements\u00a0has referred the deal to the\u00a0Paramount special committee, according to people familiar with the matter. Paramount\u2019s special committee is currently reviewing and voting on the deal, according to a person familiar with the matter. A spokesperson for Paramount declined to comment.<\/p>\n
Paramount shares surged as much as 9% on the news.<\/p>\n
The resurrected deal will see Redstone receive a reduced consideration of $1.75 billion, according to a person familiar with the matter. The other financial terms of the deal, which CNBC previously reported, will remain unchanged: Skydance will acquire roughly half of Paramount\u2019s controlling shares at $15 per share, for $4.5 billion, and contribute $1.5 billion towards Paramount\u2019s balance sheet.<\/p>\n
Redstone killed the initial bid in June as it was near the finish line. One of Redstone\u2019s reasons was feeling as though Skydance had retraded the deal by asking her to take hundreds of millions of dollars less than the previously agreed to payment, according to one of the people.<\/p>\n
The winding deal process had already led to the departure of CEO Bob Bakish earlier this year, leaving in place a three-headed office of the CEO to run the company. Other interested bids included a\u00a0joint effort\u00a0from private equity firm Apollo and\u00a0Sony, as well as a\u00a0recent entreaty\u00a0from Barry Diller, chairman of media conglomerate\u00a0IAC\u00a0as well as a former Paramount executive.<\/p>\n
The preliminary agreement was first reported by\u00a0The New York Times\u00a0and\u00a0the Wall Street Journal.<\/p>\n\n
David Ellison\u2019s Skydance\u00a0has reached a preliminary deal with Shari Redstone\u2019s National Amusements to merge with\u00a0Paramount, according to two people familiar with the matter, resurrecting a\u00a0deal which failed just weeks earlier. Controlling shareholder\u00a0National Amusements\u00a0has referred the deal to the\u00a0Paramount special committee, according to people familiar with the matter. Paramount\u2019s special committee is currently reviewing and voting <\/p>\n","protected":false},"author":0,"featured_media":20458,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-20457","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/posts\/20457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/comments?post=20457"}],"version-history":[{"count":0,"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/posts\/20457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/media\/20458"}],"wp:attachment":[{"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/media?parent=20457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/categories?post=20457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shareperformanceinsight.com\/index.php\/wp-json\/wp\/v2\/tags?post=20457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}