Los Angeles, California – Shari Redstone has made the decision to end discussions with Skydance Media, ultimately preventing a deal that would have shifted control of entertainment giant Paramount from her family to billionaire David Ellison. The termination of talks with Skydance comes after months of negotiations and uncertainty about the future of Paramount.
Redstone had been in talks with Ellison’s Skydance, who had offered approximately $2 billion to acquire Redstone’s National Amusements (NAI) in a plan that involved merging Paramount into Ellison’s company through a stock deal. Despite Skydance’s proposal to buy out half of Paramount’s common shareholders at $15 per share and inject $1.5 billion to help pay off the company’s debt, Redstone decided to walk away from the deal.
The news of the failed discussions between Redstone and Ellison has had significant effects on Paramount, with shares falling 8% to $11.04 following the announcement. Paramount’s special committee, responsible for representing all shareholders’ interests, had previously expressed support for the bid, only to be surprised by Redstone’s change of heart in recent days.
With the deal off the table, Redstone is now fielding offers from other potential buyers, including billionaire Edgar Bronfman Jr. and film producer Steven Paul. However, some sources suggest that there may not be a viable alternative to the deal that was on the table with Skydance.
NAI currently holds about 80% of Paramount’s voting rights, allowing the buyer of NAI to control Paramount without acquiring the entire company. Despite this, there may be legal challenges from non-voting shareholders if such a move were to occur. The future of Paramount remains uncertain as Redstone weighs her options and considers potential offers from other interested parties.