Who doesn’t love drama…but looks like Paramount Global is getting too much of it. Sometimes their deal doesn’t finalise and sometimes it’s just too dramatic.
What’s new? A $400 Million issue.
If you are a follower of Binged then you know that Paramount Global has inked a deal with Skydance Media, but the story doesn’t end there. Paramount has a 45-day window to look for a better offer. If they find a more attractive buyout deal and decide to accept it, they would have to pay Skydance a hefty $400 million breakup fee. This news is coming from David Ellison, the founder and CEO of Skydance.
As per the agreement with Skydance and its financial backer, RedBird Capital Partners, a special committee of Paramount’s board of directors has been given a 45-day “go-shop” period. During this time, they are allowed to actively look for and evaluate other proposals. Paramount will stay sush on this. So there is nothing for us to know from there.
The “go-shop” clause was included in the deal instead of giving Paramount Global’s non-voting shareholders a say in the agreement.
However, the $400 million breakup fee is actually very large for a deal of this size.
Regardless, the Skydance-Paramount deal will be completed in two steps: Skydance will first acquire National Amusements Inc., which holds a 77% controlling stake in Paramount, and then merge with Paramount Global.
Let’s see how long it takes. Keep following Binged for all updates from the OTT industry.