KEY TAKEAWAYS
- Skydance Media reportedly has submitted a sweetened offer for a merger with Paramount Global that the latter’s directors are expected to review soon.
- The new deal is said to offer improved terms for both voting and non-voting Paramount shareholders, and provide more cash.
- Sony Pictures Entertainment and Apollo Global Management reportedly have backed away from their non-binding, all-cash offer of $26 billion for Paramount in favor of a more limited approach.
Skydance Media has submitted a sweetened offer for a merger with Paramount Global (PARA) that the latter’s directors are expected to review soon, The Wall Street Journal reported, in the latest twist in a monthslong battle for the entertainment conglomerate.
Skydance’s prior offer received pushback from shareholders who saw it benefiting Paramount’s controlling stakeholder, Shari Redstone, over the broader investor base, and led to the departure of Chief Executive Officer (CEO) Bob Bakish.
Another suitor for Paramount, which has struggled to make money from streaming after the collapse of the cable-TV industry, has reportedly backed away from its initial offer. Sony Pictures Entertainment (SONY) and private-equity firm Apollo Global Management (APO) expressed interest last month in purchasing Paramount for $26 billion in cash, The New York Times reported, but have since backed away in favor of a more limited approach, according to a Reuters report.
Reuters, which also reported the updated offer by Skydance, said, “The new deal is said to offer improved terms for both voting and non-voting Paramount shareholders, and provides more cash.”
Many Companies Have Had Paramount in Their Sights
Skydance and the Apollo-Sony duo aren’t the only bidders to have had Paramount in their sights. In December, Axios reported that Paramount was in preliminary discussions to merge with Warner Bros. Discovery (WBD) to form an entertainment giant. Also, Bloomberg reported in January that media entrepreneur Byron Allen made a $30 billion offer for the company’s outstanding stock and debt.
Paramount shares rose about 1% to $11.92 as of 11:52 a.m. ET Friday.