Redstone ends Paramount merger talks with Skydance
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Shari Redstone. (Photo by Kevin Dietsch/Getty Images)
Shari Redstone's National Amusements has ended deal discussions with David Ellison's Skydance Media, the firm announced Tuesday afternoon.
Why it matters: Redstone's merger talks with Skydance was seen as lifeline for Paramount Global, the struggling entertainment giant that National Amusements controls.
Driving the news: In a statement, National Amusements said "they have not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI."
- The statement continued: "NAI supports the recently announced strategic plan being executed by Paramount's Office of the CEO as well as their ongoing work and that of the Company's Board of Directors to continue to explore opportunities to drive value creation for all Paramount shareholders."
- The Wall Street Journal was first to report that talks between National Amusements and Skydance had ended.
Catch up quick: Deal talks between National Amusements and Skydance have been ongoing since December.
- The two parties entered a 30-day exclusive negotiating window to try and hammer out a deal in April. But that window lapsed, and the two sides tried to continue to work on an agreement.
- The talks focused on a two-step deal, where Skydance would acquire National Amusements, and then Skydance and Paramount would merge.
Zoom in: Shares of Paramount fell 10% after the Journal reported the news and closed down nearly 8% on Tuesday.
- Redstone will now likely pursue a sale of just National Amusements, without trying to merge Paramount, the Journal said, citing sources.
- The Journal reported that National Amusements has received interest from two separate parties — one led by Hollywood producer Steven Paul, and another led by media executive Edgar Bronfman Jr., who is backed by private equity firm Bain Capital.
- Skydance declined to comment.
