The agreed term determines a period of 45 days for Paramount to “actively evaluate alternative acquisition proposals”
A Paramount announced on Sunday night (7.Jul.2024) its intention to merge with Skydance Media. The agreement provides for the acquisition of holding National Amusements, which controls 77% of Paramount’s voting stock and, “subsequently a merger of Skydance and Paramount Global”.
In a joint note (fullin English – PDF – 243 Kb), the companies said that, “With a 15-year history of partnering on blockbuster projects, the Skydance-Paramount combination will unite key intellectual properties and increase Paramount’s exposure to cutting-edge, next-generation digital businesses”. The agreement includes a 45-day period during which Paramount “will be allowed to actively solicit and evaluate alternative acquisition proposals”.
Skydence Media was founded by David Ellison. He is the son of Larry Ellison, founder of Oraclea company specialized in the development and commercialization of hardware, software and databases.
According to the AxiosParamount has lost more than 70% of its market value since 2019, when the merger of Viacom with the CBS.
“Skydance to Merge with Paramount in Transaction That Will Value New Paramount at an Enterprise Value of Approximately $28 Billion”, reads the statement.
Skydance will acquire National Amusements for $2.4 billion and offer remaining shareholders the option to sell their shares. The company also said it will use a “additional capital to pay down debt and recapitalize the new Paramount’s balance sheet to support strategic initiatives”.
In the statement, the companies stated that it is important “highlight that the transaction preserves Paramount’s more than 100-year legacy as one of Hollywood’s most iconic production companies and CBS’s stature as an esteemed source of news and entertainment”.
Shari Redstone, President of Paramount Global and CEO of National Amusements stated, “given the changes in the industry”, is looking for “strengthen Paramount for the future” and ensure that content remains the most important thing.
“Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment. As a long-time production partner of Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to the next stage of growth. We believe in Paramount and will always believe in it.“, he said.
David Ellison, founder and CEO of Skydance, stated that the current moment is one of “definition and transformation” To the “storytellers, content creators and financial stakeholders who invest in Paramount’s legacy and the longevity of the entertainment economy”.
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