Los Angeles, California – Skydance Media and National Amusements Inc., owned by Shari Redstone, have reignited talks to acquire Paramount Global in a surprising turn of events during the holiday week. The two parties have reportedly reached a tentative agreement, awaiting review by Paramount Global’s special board committee. This potential acquisition comes after a period of uncertainty and speculation surrounding the media giant’s future.
The renewed talks with David Ellison’s Skydance Media and Gerry Cardinale’s RedBird Capital are believed to include a 45-day period, allowing Paramount and National Amusements Inc. to explore other bids. The deal with Skydance is seen as a strategic move to find a suitable bidder to match the agreed terms.
News of the renewed negotiations was initially revealed by sources such as the New York Times and the Wall Street Journal. Earlier talks between Skydance and National Amusements Inc. had abruptly ended in June, citing concerns about closing the proposed $6 billion deal. It remains unclear if the terms of the new agreement have significantly changed from the previous failed pact.
Sources close to the situation mentioned that Skydance had reservations about National Amusements Inc.’s request for noncontrolling shareholders to vote on the deal. This demand was seen as an opportunity to secure approval and shield Redstone from potential legal challenges. However, common shareholders publicly criticized the terms of the Skydance deal when details began to emerge in April and May.
The 45-day window for Paramount and National Amusements Inc. to seek a better offer aims to address the impasse over the shareholder vote issue. Skydance’s interest in Paramount was primarily due to National Amusements Inc.’s control over the company, while Redstone may have been concerned about prolonged legal battles and operational uncertainties.
Representatives for Paramount Global, National Amusements Inc., and Skydance have chosen not to comment on the situation, maintaining a sense of intrigue and suspense surrounding the potential acquisition. The unexpected resumption of talks underscores the dynamic nature of the entertainment industry and the complexities involved in major mergers and acquisitions.