David Ellison’s Skydance Media is moving closer to its goal of acquiring Paramount Global now that Paramount board of directors and controlling shareholder Shari Redstone have reportedly signed off on the move.
The New York Times and Bloomberg News reported Sunday evening that Paramount Global’s full board and Redstone have approved the complicated three-way transaction that will take Paramount, CBS and the former Viacom assets out of the hands of the Redstone family for the first time in decades. The transaction still faces a complicated process of regulatory approvals in part because the deal involves Paramount Global’s television stations, which trigger the involvement of the FCC.
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Bloomberg News was first to report Sunday that the special committee of Paramount Global’s board of directors tasked with reviewing M&A options has agreed to revised terms for a merger with Skydance. The pact will now be reviewed by the full board of the parent company of Paramount Pictures, CBS, Nickelodeon, Paramount+, Showtime, MTV and more. Skydance and Paramount are expected to announce the agreement early Monday before the markets open, if not late tonight.
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As part of the deal, Paramount Global will have the right to shop around for matching or superior offers for a 45-day period before completing the deal with Skydance. Although Paramount has been seen as on the block for years, that ticking clock is likely to bring out opportunistic contenders. Already, media adjacent-moguls including Barry Diller and Edgar Bronfman Jr. have indicated interest in a deal to buy out National Amusements.
Paramount and Skydance were close to tying the knot this time last month when National Amusements abruptly broke off talks, citing concerns the company would not be able to close the deal. Skydance’s effort is backed by Gerry Cardinale’s RedBird Capital, among other equity players.
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Representatives for Paramount Global, the board’s special committee and Redstone’s National Amusements Inc. holding company did not respond to requests for comment Sunday. A representative for Skydance Media declined to comment.
(Pictured: Shari Redstone, David Ellison)