Paramount’s directors have agreed to back the proposed merger between it and Skydance, taking the deal a step closer to completion.
It’s not yet a done deal, but the merger between Paramount and Skydance has taken a big step towards completion with the news that Paramount’s board of directors has agreed to the process that will see the two companies become one. We’re on the path to Skydance Media taking over control of Paramount Global.
It’s been a drawn-out process that at one point looked to have faltered, but things now seem to be back on track. With Paramount Global’s directors having agreed to the deal, the full board will next need to add its agreement, and it’s being suggested that an announcement that the next stage is complete could come early next week.
Following that step, we then enter what could be the most interesting phase of the agreement. Paramount Global ‘have the right to shop around for matching or superior offers for a 45-day period before completing the deal with Skydance’ per an LA Times report.
We know that there are other interested parties out there, so rival offers could yet emerge. As it stands, though, Skydance is in pole position.
The deal will see Paramount’s owner Shari Redstone and her family earn $1.75 billion from the sale of the controlling stake of the company, including some payments towards debt relief as well. Then, the full merger between both companies will take place which is said to be costing Skydance around $8.4bn in total.
As well as taking over Paramount Pictures and adding a bona fide Hollywood studio to its portfolio, Skydance will also acquire cable TV networks such as MTV, CBS, Nickelodeon and of course, the Paramount+ streaming service.
How the company intends to use these properties remains to be seen, but it promises to be a changeable time ahead for the merged companies.
