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A new scenario has surfaced in the ever-swirling speculation about Paramount Global’s fate.
The Wall Street Journal reported this afternoon that Skydance, with backing from other investors, is considering an all-cash bid for National Amusements. The Shari Redstone-led company controls nearly 80% of Paramount shares and is the gatekeeper for any M&A deal.
Redstone became non-executive chair of Paramount’s board after spending years engineering a merger of CBS and Viacom, with the combined company rebranding as Paramount Global in 2022. She has reportedly grown increasingly interested in fielding offers for the company in recent months. Like many of its media peers, Paramount has lost significant value due to cord-cutting, streaming expenses and concerns about its debt.
Skydance and Paramount declined to comment. Reps from National Amusements and Paramount did not immediately respond to a request for comment.
One of the backers of the bid by David Ellison’s Skydance is Ellison’s father, Oracle founder Larry Ellison, according to the WSJ report. The bid for control of National Amusements is contingent on Paramount Pictures, which Skydance has collaborated with extensively, financing several Mission: Impossible installments and 2022 megahit Top Gun: Maverick.
Byron Trott, Chairman and Co-CEO of BDT & MSD Partners, has been helping to evaluate strategic alternatives. Trott’s firm made a $125 million preferred equity investment in National Amusements last spring.
One industry vet told Deadline the new report appeared to be “a little early” in the process given the extent of due diligence involved, including the data from Paramount+ and other streaming operations. “It’s not unusual for companies to leak these kinds of reports if they’re looking to boost their share price or get the attention of other potential suitors,” the source added.
Skydance and private equity firm RedBird first surfaced as suitors several weeks ago. Warner Bros. Discovery, a media giant suffering from many of the ills Paramount is, expressed interest in a potential team-up but those pre-Christmas discussions have not progressed in the new year.
Paramount shares perked up a bit after the latest report, but have been largely flat today. At $14.25, they are worth less than half what they were after the Viacom-CBS merger closed in December 2019.
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