:max_bytes(150000):strip_icc()/GettyImages-1530100071-7399d350ba16470d9ea323f52e693739.jpg "Paramount Stock Lags After Shari Redstone Kills Skydance Deal")
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Key Takeaways
- Paramount Global shares were little changed Wednesday, a day after tumbling following reports controlling shareholder Shari Redstone had called off monthslong merger talks with Skydance Media.
- The news came shortly before a committee of Paramount directors was set to vote on the merger.
- Redstone is said to be considering selling National Amusements, the holding company through which she controls Paramount, instead of pursuing a merger.
Paramount Global (PARA) missed out on a CPI-fueled stock rally Wednesday, a day after tumbling following reports controlling shareholder Shari Redstone had called off monthslong merger talks with Skydance Media.
The decision, first reported by The Wall Street Journal, came shortly before a committee of Paramount directors was scheduled to vote on the proposed merger.
The two parties had agreed on the financial terms of the deal but failed to see eye-to-eye on whether to seek the approval of non-controlling shareholders, according to the Journal. Redstone, who is not Paramount’s majority shareholder but owns a controlling interest through her family’s holding company National Amusements, advocated for putting the merger to a vote to avoid potential lawsuits. Skydance allegedly resisted.
Decision Ends Lengthy Effort by Skydance To Acquire Paramount
The decision marks the end of a monthslong effort by Skydance and its private equity partner RedBird Capital to acquire the storied Hollywood studio. The Skydance deal was seen by many as a lifeline for Paramount, which has struggled to adapt to the streaming era, falling behind pioneers like Netflix (NFLX) and deep-pocketed tech companies dabbling in entertainment, like Apple (AAPL) and Amazon (AMZN).
Paramount this year has been bombarded with acquisition offers from the likes of private equity giant Apollo Global Management (APO) and media mogul Byron Allen.
According to the Journal, Redstone is now likely to explore selling just National Amusements rather than merging Paramount with another entity.
Paramount shares were little changed as of 11:30 a.m. ET Wednesday, a day after tumbling nearly 8% following the Journal report. The stock has lost 25% of its value so far this year.