It’s finally official. Skydance and Paramount’s proposed merger will go ahead. For real, this time! All parties have finally agreed upon the landmark deal (or should we say ordeal at this point?), and a consortium of Skydance Media and RedBird Capital is set to take the helm at Paramount. The deal will move on to regulatory approval soon. Our entertainment lawyer on the ground, Brandon Blake of Blake & Wang P.A., breaks the good news.
A Landmark Deal
We’ve covered the trials and tribulations of the Paramount merger in extensive detail before. Now, all that stands in the way of the sale closing is regulatory approval. Skydance will take control of the majority stake in National Amusements, meaning it gains control of Paramount by default, as well as its extensive IP assets, film and TV studios, streaming and linear/cable arms, and other assets.
To achieve this, however, Paramount will officially take control of Skydance (another twist in a tale full of them). David Ellison will step into the CEO role, while Jeff Shell, previously CEO of NBC Universal, will handle the company's day-to-day operations as president.
The Deal As We Know It
The initial Skydance bid has been significantly sweetened in the hopes of courting Paramount’s non-voting shareholders. They will take charge of National Amusements for $2.4B in cash and $4.5B for the Class A and B stock/cash merger. Paramount will also get a $1.5B injection for its balance sheet. This should leave it in control of 70% of Paramount shares. The all-stock deal sees Skydance valued at $4.75B.
Will this be enough to prop up Paramount’s shaky share price and prevent the cash hemorrhaging that has plagued the company? We can only hope. One thing is for certain, however. All Hollywood and Wall Street eyes will be watching what happens.
