Paramount and Skydance have finalised their merger negotiations, as per CNBC. An official announcement regarding the new merger is expected shortly. The merger between the two production houses reaches its final stage after weeks of discussion and a recent and intriguing offer from Sony Pictures and Apollo Global Management.
Private equity firms such as KKR and RedBird Capital are backing up this much-publicised merger between Paramount and Skydance. According to CNBC, both firms have agreed to the terms. The deal now awaits signoff from Shari Redstone (primary owner of National Amusements and Paramount’s controlling shareholder). National Amusements currently owns nearly 77% shares (Class A) of Paramount.
As per the new deal’s terms, Skydance and RedBird will collectively bestow $1.5 billion (in cash) to Paramount to aid the production house in reducing its debt. Moreover, the deal will immensely benefit Shari Redstone as she will receive $2 billion for her media company, National Amusements. The deal’s closure will result in RedBird and Skydance owning nearly two-thirds of Paramount’s shares.
The merger announcement arrives just before Paramount’s annual meeting scheduled for Tuesday. Notably, four board members, including three involved in the merger negotiations, will be stepping down at the meeting. Representatives of Paramount and Skydance are yet to comment on this matter. Stay tuned for more updates.