Another day in Hollywood, another merger. This time, it’s Paramount and Skydance.
The two companies, which have been negotiating for months, have agreed to the general terms of a merger though the deal is not final yet. The news of the tentative agreement was reported by CNBC on Monday.
The deal is currently being reviewed by Paramount’s controlling shareholder, Shari Redstone, whose National Amusements owns over 75% of class A Paramount shares.
Skydance is run by David Ellison, whose father, Oracle co-founder Larry Ellison, has a net worth of $148 billion and is the fifth-richest person on the planet. Skydance investors include private equity firms RedBird Capital and KKR, as well as Ellison’s father.
Skydance’s current offer is around $8 billion, with around $2 billion of that amount going to National Amusements, and around $4.5 billion for around 50% of class B Paramount shares. An extra $1.5 billion in cash would go to reducing Paramount’s long-term debt, which currently stands around $15 billion.
Paramount Global owns, among other things, Paramount Pictures, Nickelodeon, MTV, Comedy Central, and Pluto TV. For a closer look at their animation holdings, see this Cartoon Brew story.
Additional details about the pending merger can be read in the Wall Street Journal, Deadline, and New York Times.
