The long-running saga to place Paramount Global under the control of Skydance Media has reportedly concluded, with no deal in place.
Reports this morning are stating that the merger deal between Paramount and Skydance is no longer happening. Although Skydance Media isn’t the only firm interested in buying Paramount Global, it was undoubtedly in pole position to secure a deal and has been for many months now.
Many speculators agreed that 2024 would be the year when National Amusements, the controlling force behind Paramount, sold up and handed the company to another party. While there was reportedly interest from Sony and an investment partner that would have been far more lucrative for National Amusements, in fairness to Shari Redstone (the controlling figure at Paramount), the company opted for a significantly less profitable deal with Skydance because it is believed the production company would safeguard key aspects of Paramount’s future.
A merger with Skydance would probably still have resulted in some job losses and certain assets being sold off, but it’s generally accepted that the future of the Hollywood studio would have been assured – perhaps even strengthened. With that deal now having collapsed, Paramount is once again faces an uncertain future.
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No reason has been offered for the breakdown, although we do know the reasons are ‘non-economic’. There’s been some speculation (via The Wall Street Journal) that the sticking point was that National Amusements wanted Skydance to guarantee it would cover legal costs. Paramount shareholders aren’t entirely happy with National Amusements accepting a less lucrative deal, and in the event that they successfully sue, somebody would have had to pick up that tab.
What it means for the future of Paramount is unclear. The Sony/Apollo deal likely wouldn’t be great for the future of Paramount (if you need a case study to map that scenario out, just look at the fortunes of 20th Century Fox, sorry, 20th Century Studios) in the years since Disney purchased it.
Perhaps National Amusements could simply choose not to sell, although with many declining assets (such as cable TV networks) under its umbrella, it will have to do something to reverse the company’s dwindling fortunes. Then there’s the spectre of legal action from shareholders if National Amusements chooses not to take a deal.
More is sure to unfold as this one develops and we’ll bring you more as we hear it.
