Key Takeaways from Paramount Global’s Potential Takeover Deal

The entertainment industry was abuzz on Monday as reports surfaced of a potential takeover of Paramount Global by Skydance Media and partners. Paramount Global shares saw a significant rise following news that Skydance Media, along with private equity firms RedBird Capital and KKR, had agreed to purchase nearly 50% of Paramount’s Class B shares at $15 each. This offer represents a 26% premium to Paramount’s closing price on Friday.

The Wall Street Journal reported that Skydance Media was also offering nonvoting shareholders the option to cash out at a premium of around $15 a share. The proposed deal would involve Skydance and its backers acquiring Shari Redstone’s National Amusements, which holds a majority stake in Paramount, for $2 billion. However, Redstone has yet to agree to the terms.

If the deal goes through, Skydance and RedBird would collectively own two-thirds of the company, with the remaining shares held by Class B shareholders. This development comes after months of negotiations and competing bids for control of Paramount Global. In April, Apollo Group Management and Sony Pictures were reportedly in discussions to make a joint bid for the entertainment giant.

Shares of Paramount Global have been volatile throughout the takeover saga, with Monday’s surge bringing them up over 7% to $12.78. Despite the recent gains, the stock is still down more than 13% for the year. Investors and industry insiders will be closely watching to see how this potential takeover plays out and what it means for the future of Paramount Global.