Paramount Global, the prestigious Hollywood studio home to Paramount Pictures, CBS, MTV and other cable networks, is reportedly considering entering into exclusive negotiations with Skydance.
If they enter into exclusive negotiations, they will work with media mogul Shari Redstone, who owns a controlling interest in the media giant through her stake in National Amusements, and the creator of blockbuster hits such as “Mission: Impossible – Dead Reckoning” and “Transformers.” A long-term deal with Skydance could move forward. “Rise of the Beast” and “Top Gun: Maverick” (Paramount), The New York Times reported on Tuesday.
Late last month, Skydance boss David Ellison, son of Oracle billionaire Larry Ellison, met with Paramount’s independent board to discuss his vision for the deal, people told the Times. .
Deals being discussed reportedly include Skydance’s acquisition of National Amusement and its merger with Paramount.
According to the report, Paramount’s board wants to enter into a company-wide deal that also includes the Paramount+ streaming channels, rather than selling individual assets.
Another issue could be concerns about potential lawsuits from Paramount’s common stockholders if the sale is approved, said Charles Gasparino, a Fox Business reporter and New York Post columnist. reported on Wednesday.
Representatives for Paramount and Skydance declined to comment.
Other investors are also eyeing Paramount. Last month, private equity firm Apollo Global Management made an $11 billion offer to buy Paramount’s film and television studio.
Apollo continues to consider which offer is most attractive to Paramount’s board, the Times reported.
Byron Allen, whose entertainment studio owns the Weather Channel, has also expressed interest in buying Paramount.
Redstone, the daughter of the late media mogul Sumner Redstone, began negotiations with Skydance last year to sell her 80% stake in National Amusements, which controls Paramount.
Redstone had held off on selling Paramount for years in hopes that its balance sheet would improve and the streaming service would take off, but the competitive landscape, which includes major companies like Netflix and Disney+, has proven tough. .
Paramount stock has fallen 18% since the beginning of the year and trades at a deep discount to the combined value of Viacom and CBS, which merged to form Paramount in 2019. The company had $14.6 billion in long-term debt at year-end. Bloomberg reported last month.
Meanwhile, Paramount+ is still bleeding money, but its losses are decreasing as it gains subscribers.
The company faced another blow last week when ratings agency S&P downgraded its debt to junk bond status, citing “accelerated decline” in its traditional TV business and continued uncertainty in its streaming push.
Analysts said one silver lining from the downgrade is that it could make it easier for buyers to buy Paramount, allowing them to avoid provisions requiring immediate payment of the company’s debt.
