Paramount's special committee approves Skydance merger
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Shari Redstone in 2023. Photo: Kevin Dietsch/Getty Images.
Editor's note: For the latest on this story, read "Paramount Global agrees to merge with Skydance Media" here.
Paramount Global's special committee overseeing strategic options has approved the latest merger offer from Skydance Media, sources tell Axios.
Why it matters: This should end months of complex and chaotic talks to combine Shari Redstone's media empire with an upstart studio run by David Ellison, the son of Oracle founder Larry Ellison.
Details: Redstone, Paramount's controlling shareholder, finally blessed the latest offer from Skydance Media last week after abruptly walking away from the deal earlier in June.
- The latest terms would have Skydance Media purchase Paramount's parent company National Amusements for a reported $1.75 billion, and then merge with Paramount.
- Paramount's board is expected to approve the deal shortly, a source tells Axios, with an official announcement to follow.
- The agreement does include a 45-day "go shop" provision, which means a superior bid remains possible.
- Paramount declined comment.
Catch up quick: Paramount and Skydance entered exclusive merger discussions in April. After the window expired, other bidders signaled interest, including a joint offer from Apollo and Sony.
- But regulatory and strategic concerns gave Redstone jitters about the Apollo/Sony bid. Given the harsh media climate, she was left with few other options.
What's next: The deal would still require U.S. regulatory approval.
- Skydance CEO David Ellison, the son of Larry Ellison, will run the combined company.
- Private equity firms RedBird Capital Partners and KKR are investors in Skydance, and would own a stake in the combined company. Jeff Shell, formerly the CEO of NBCUniversal and currently a RedBird executive, is expected to be part of the company's management team.
