A special committee of Paramount Global’s board set up to steer its M&A process has declared an end to the “go-shop” period in its pending Skydance Media merger and says the transaction will close in the first half of 2025, Deadline is reporting.
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| David Ellison / Getty Images |
In a statement released on Monday (Aug. 26) evening following the withdrawal of a rival bid led by Edgar Bronfman Jr., the committee acknowledged having received word that the offer had been withdrawn. The emergence of that alternative to David Ellison‘s Skydance had earlier prompted the committee to extend the “go-shop” for an additional 15 days, through September 5.
“On behalf of the Special Committee we thank Mr. Bronfman and his investor group for their interest and efforts,” said Charles E. Phillips, Jr., Chair of the Special Committee.
“Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our Special Committee continues to believe that the transaction we have agreed with Skydance delivers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape,” he added.
While there is likely to be regulatory scrutiny of the transaction, especially due to the broadcast licenses owned by CBS and a portfolio of local stations in the Paramount fold, most observers see a fairly clear path to approval. The saga of Paramount’s M&A aspirations, which began at the end of 2023, and went on to involve a roster of major (and some minor) names in the media business, has been one of the messiest in recent industry history.
The Skydance proposal that prevailed will see a total of $8 billion invested into Paramount in a two-step process. Skydance will first acquire Shari Redstone‘s National Amusements Inc. and then execute a full merger with Paramount Global.
If approved, the deal will mark a major turning point in the media business, with the Redstones relinquishing control of an asset they have controlled for more than three decades. Shari Redsone’s late father, Sumner, assembled the pieces of the media empire that would come to be known as Paramount, eventually ceding the stage amid a host of controversies both personal and professional. Ellison, meanwhile, has long been linked to Paramount as a co-finance partner of major film and TV projects. He also brings the financial resources of his father, Larry Ellison, the billionaire co-founder of Oracle, and has pledged to invest significant amounts of money in Paramount’s streaming operation.
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Originally published: August 28, 2024.
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