Skydance Media has eagerly awaited a response to its enhanced bid for entertainment giant Paramount Global (NASDAQ:PARA), proposing to purchase nearly half of the nonvoting Paramount shares at $15 each. Although CNBC reported that a deal might be imminent, another source indicated that no decision had been made yet. National Amusements, holding 77% of Paramount’s class A voting stock, confirmed receipt of the proposed financial terms and stated they were under review.
The new bid comes after months of negotiations between Skydance and Paramount, driven by the challenges facing traditional television industries. Under the revised terms, Skydance would initiate a tender offer for about 40% of Paramount’s nonvoting B-class shares. Shareholders would also retain ownership in the merged entity resulting from the Paramount-Skydance merger, uniting Paramount’s film studio with CBS and cable networks like MTV and Nickelodeon.
Additionally, Skydance intends to acquire National Amusements, a privately held company owning theaters in the U.S., UK, and Latin America. This acquisition, worth $2 billion, would grant Skydance voting control over Paramount, facilitating the merger. Paramount’s board and its controlling shareholder, Shari Redstone, have refrained from commenting on the matter.
While Sony Pictures Entertainment, in partnership with Apollo Global Management, had initially proposed a nonbinding, all-cash offer of $26 billion, they have since adopted a more restrained approach, allowing Skydance’s bid to take center stage.
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