In a significant move within the entertainment industry, National Amusements, led by Shari Redstone, has struck a preliminary deal to sell its controlling interest in Paramount Global to David Ellison’s Skydance Media, sources familiar with the matter informed Reuters on Tuesday.
The news sparked a notable 9% surge in Paramount’s shares during after-hours trading.
According to the sources, Skydance Media is set to acquire National Amusements for $1.75 billion, which includes the 77% majority voting stake in Paramount. As reported by the Wall Street Journal, the agreement includes a 45-day “go-shop” period, allowing other potential buyers to submit competitive bids.
Among those expressing interest in acquiring National Amusements are film producer Steven Paul, Seagram heir Edgar Bronfman Jr., and IAC’s Barry Diller.
A source linked to one of the potential bidders suggested that competing bids might still materialize, potentially offering Paramount shareholders or Shari Redstone herself more lucrative terms.
National Amusements has referred the proposed deal with Skydance to a special committee of Paramount’s board for review, according to individuals familiar with the matter. Notably, the revised agreement does not require majority approval from non-Redstone shareholders, a departure from previous conditions, the Wall Street Journal reported.
The transaction is envisioned as the initial phase of a two-part process, culminating in the merger of Skydance with Paramount, home to the eponymous film studio, CBS, and notable cable networks including MTV and Nickelodeon.
Paramount Pictures, a storied institution with a century-long legacy, is renowned for blockbuster franchises such as “Titanic,” “The Godfather,” and “Transformers,” while Skydance has co-produced major Paramount releases like “Top Gun: Maverick” and “Star Trek Into Darkness.”
Paramount declined to comment on the potential deal with Skydance, and a spokesperson for the special committee could not be reached immediately for comment.
David Ellison, the son of Oracle co-founder Larry Ellison, has pursued Paramount for several months, a proposition that received enthusiastic support from Shari Redstone, daughter of late media magnate Sumner Redstone, according to multiple sources. Despite initial reservations, Redstone reconsidered the deal after Skydance revised its offer to include greater financial benefits for other shareholders.
Sources familiar with the negotiations indicated that National Amusements re-engaged with Skydance in the past week while maintaining discussions with other interested parties.
Throughout the process, Redstone consistently saw strategic value in merging Paramount with Skydance, according to sources familiar with her thinking.
National Amusements, which owns movie theaters across the United States, Britain, and Latin America, retains 77% of Paramount’s Class A voting stock, which belongs to the Redstone family.
