Skydance’s Proposed Merger with Paramount Global Appears to be on the Ropes – Shari Redstone’s Stake in Question

After weeks of negotiations, the proposed merger between Skydance and Paramount Global, led by David Ellison, appears to be in jeopardy. The special board committee at Paramount has cooled on the offer, which would have involved acquiring Shari Redstone’s stake in the company and merging Skydance into Paramount with new leadership.

Skydance had a 30-day exclusive negotiating window, but the offer has not been well-received by some Paramount shareholders. Talks between the two sides are ongoing, but Paramount also has another offer on the table from Apollo and Sony Pictures for $26 billion in all-cash.

Shari Redstone is reportedly not enthusiastic about the Apollo-Sony deal. The end of the Skydance talks comes after a tumultuous week for Paramount, which saw CEO Bob Bakish replaced by a trio of executives. Four board members also announced they would not stand for reelection.

With the Skydance deal off the table and uncertainty surrounding the Apollo-Sony deal, Paramount will need to find a new path forward under its new leadership. The executives have promised to communicate a new long-term plan to employees in the coming weeks.

Paramount shares have dropped about 5 percent following the news. Spokespersons for Paramount, Skydance, Shari Redstone, and the board committee have all declined to comment on the situation.