David Ellison’s Skydance Media is moving closer to its goal of acquiring Paramount Global after a key vote was taken by Paramount board members. But a formal acquisition agreement between Skydance and Paramount is still a long way off.
Bloomberg News reported this on Sunday that the special committee of Paramount Global’s board of directors charged with reviewing M&A options has agreed to revised terms for a merger with Skydance. The pact will now be reviewed by the full board of the parent company of Paramount Pictures, CBS, Nickelodeon, Paramount+, Showtime, MTV and more. If the deal is approved by the board, controlling shareholders Shari Redstone, Skydance and Paramount in particular are expected to announce the agreement as early as Monday before markets open at 9:30 a.m. ET.
As part of the deal, Paramount Global has the right to search for matching or superior offers for a period of 45 days before finalizing the deal with Skydance. While Paramount has been seen as on the block for years, that ticking clock will likely bring out opportunistic contenders. Adjacent media outlets, including Barry Diller and Edgar Bronfman Jr., have already expressed interest in a deal to buy out National Amusements Inc., Redstone’s holding company, which owns its majority stake in Paramount Global.
Paramount and Skydance came close to tying the knot this time last month when National Amusements abruptly ended talks over concerns that the company would not be able to close the deal. Skydance’s efforts are supported by Gerry Cardinale’s Redbird Capital, among others.
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Representatives from Paramount Global, the board’s special committee and Redstone’s holding company National Amusements Inc. did not respond to requests for comment Sunday afternoon.