Paramount Pictures acquisition news 0

[Bosco685]

Since it is clear Paramount Pictures wants someone to purchase them.

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Even as Paramount, the home of the “Top Gun” movie franchise and “SpongeBob SquarePants,” continues its talks to merge with another media company, Skydance, a new suitor has emerged.

 

Sony Pictures Entertainment and Apollo Global Management, an investment firm, have been in discussions about teaming up for a joint bid to acquire Paramount, two people familiar with the situation said Thursday.

 

The two companies have not submitted an official bid, as Paramount is still in exclusive conversations with Skydance, said the people, who were granted anonymity to discuss delicate negotiations. But the potential deal with Skydance has generated significant investor pushback.

 

[Silver Surfer]

What sort of price tag?

[Bosco685]

On 4/24/2024 at 8:39 PM, Silver Surfer said:

What sort of price tag?

New Details on Skydance’s Offer to Buy Paramount; Studios Would Merge, Paramount’s Stock Would Remain Public

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• Bloomberg reports that Ellison has agreed to pay $2 billion for Shari Redstone’s voting stock in Paramount Global.
• Ellison and his financial consortium would own 45% to 50% of the new company and would keep its stock public.
• Reports indicate Ellison would keep Paramount+, but may restart sale talks for BET Media Group and other assets.

 

Bloomberg is reporting that the two sides have a “tentative deal” for Ellison to acquire the controlling shares of Paramount already in place. This week, Bloomberg reported that Ellison, RedBird Capital, and other financial backers have agreed to pay just north of $2 billion for National Amusements Inc., the holding company owned by Shari Redstone that controls 77% of Paramount’s voting stock.

 

CNBC reports that Ellison and his partners would own 45% to 50% of the new company, and the Skydance movie studio would merge with Paramount’s storied production house. However, as of now, no details have been completely finalized. When the companies entered into exclusive negotiations last week, they agreed to a 30-day window to conclude talks and come out the other side with a deal.

 

 

Skydance Makes ‘Best and Last’ Offer to Paramount to Try and Close Merger Deal

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Key Details:

• A dividend or stock repurchase had been discussed as a way to satisfy nervous Paramount shareholders in the past.
• The request for a new offer originated with Redstone’s holding company National Amusements Inc.
• Paramount’s exclusive negotiating window with Skydance is set to close on May 3, though an extension is possible.

Terms of the updated offer to Paramount weren’t immediately available, but they’re almost certain to include more consideration for Paramount shareholders other than primary owner Shari Redstone. Bloomberg reported in early April that negotiators were discussing a stock buy-back or a dividend to make it a more desirable deal for other Paramount investors, so perhaps Skydance’s revised offer includes one of these provisions.

 

Redstone stands to make around $2 billion for her 77% of Paramount’s voting stock. That stock is owned through the Redstone’s holding company National Amusements Inc., which originated the request for a new offer from Skydance to help mollify the company’s other investors, according to Deadline.

 

Mario Gabelli’s firm GAMCO Investors holds more Paramount stock than anyone except National Amusements, and this revised offer could be aimed specifically at his various Paramount-owning clients. Gabelli has been a vocal opponent of the Skydance deal and has threatened to sue if his clients don’t get good value from a future deal between Paramount and Skydance.

 

Edited April 29 by Bosco685

[Silver Surfer]

Thanks. Obviously a very complex transaction but only $2B for 77% of the voting stock seems low for a company that has over 100 years of history and a catalog that is endless. But I guess the distribution, licensing, etc are all held through subsidiaries?

[media_junkie]

On 4/29/2024 at 10:07 PM, Silver Surfer said:

Thanks. Obviously a very complex transaction but only $2B for 77% of the voting stock seems low for a company that has over 100 years of history and a catalog that is endless. But I guess the distribution, licensing, etc are all held through subsidiaries?

Yeah, I was also thinking $2B seems cheap.

[Bosco685]

Now the bigger money has come to play.

 

[Bosco685]

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Both James Cameron and Ari Emanuel offered their support this weekend of Skydance‘s bid to acquire Paramount.

 

Though reports earlier this week suggested that Paramount’s special board committee was leaning against accepting Skydance’s offer, Cameron and Emanuel told The Financial Times on Sunday that they supported Skydance founder David Ellison’s potential leadership.

 

The deal, first offered during a 30-day exclusive negotiating window at the beginning of April, would see Skydance, joined by financial partners RedBird Capital and KKIR, acquire controlling shareholder Shari Redstone’s stake in the company and then merge Skydance into Paramount, keeping it as a publicly traded company, with new leadership at the helm.

 

“I love the Ellison idea,” Cameron, whose 1997 film Titanic remains one of Paramount’s most successful movies, said. “If he gets . . . to run Paramount creatively, it could be a huge boon for this business in these ailing times. David’s proven himself.”

 

Emanuel, Endeavor CEO, also saw promise in Ellison’s vision, calling him “a natural acquirer” of the company. “David has a real movie business [with] big franchises,” he said. “Everybody is in business with him — Amazon, Netflix, Apple, Paramount and Disney all have a good relationship with David.”