via Wikimedia Commons)
Skydance Media is still pursuing a potential merger with Paramount Global, and has made an amended offer that aims to be more attractive to both voting and non-voting shareholders of the entertainment giant.
The revised deal was reported by the Wall Street Journal, which said it couldn’t nail down the specific terms of the offer. It comes several weeks after pre-merger discussions between Skydance and Paramount exited a window of exclusivity, and shortly after Sony Pictures and hedge fund Apollo Global Management were said to be interested in making a play for Paramount.
Sony and Apollo Global have since backed off their $26 billion all-cash offer, reportedly over concerns about how to leverage Paramount’s streaming platforms and which part of the company to sell off should the deal go through.
Skydance has been in discussion with Paramount’s board about a merger for several months, the WSJ said. If Paramount’s committee of directors recommends the deal, Paramount’s largest shareholder, Shari Redstone, would ultimately decide whether to move forward.
The Skydance deal involves two steps: Skydance would purchase National Amusements, Redstone’s company, which owns 77 percent of Paramount’s stock. Then, after the acquisition is complete, Paramount would acquire Skydance for around $2 billion in cash.
When earlier proposed, the deal drew scorn from some institutional and retail investors, who argued the arrangement would substantially benefit Redstone alone. They assert Paramount would be better off pursuing bids from others, or simply going at it alone.
