![](https://www.pymnts.com/wp-content/uploads/2019/11/shutterstock_1464290867-e1596869523801.jpg)
Paramount Global and Skydance Media are on the brink of finalizing a significant merger deal, with talks progressing swiftly towards a resolution that would reshape the landscape of the entertainment industry. The deal involves merging the two media giants and acquiring the controlling stake held by Shari Redstone, according to sources familiar with the negotiations.
The special committee at Paramount Global, along with David Ellison’s Skydance Media, bolstered by private equity heavyweights KKR and RedBird Capital Partners, are honing in on the intricate details of the deal. Central to the discussions is the valuation of Skydance’s assets and determining the equity infusion required for the merger, insiders reveal.
Sources close to the matter indicate that both parties are nearing consensus on valuing Skydance at approximately $5 billion. The envisioned merger would integrate Skydance into Paramount Global, amplifying the conglomerate’s presence in the entertainment sector. To facilitate the transaction, Ellison and the consortium are poised to raise between $4.5 billion to $5 billion in fresh equity. A substantial portion of these funds, around $2 billion, is earmarked for the buyout of Redstone’s stake, with additional allocations aimed at reducing existing debt burdens.
Read more: Warner Bros Discovery and Paramount Global Face Mounting Concerns Over Proposed Merger
The timeline for finalizing the deal is ambitiously set for May, as per insiders. However, delays arose due to purported sluggishness in Paramount Global’s facilitation of the necessary due diligence procedures. Consequently, the exclusivity window for merger discussions, slated to conclude on May 3, might be extended by two weeks upon the consortium’s request.
In a strategic move following the merger, Skydance plans to usher in significant leadership changes. David Ellison is poised to assume the mantle of CEO at Paramount Global, while former NBCUniversal CEO Jeff Shell is slated to be appointed as President, sources disclose. This transition would entail the departure of current Paramount CEO Bob Bakish, marking a pivotal moment in the company’s trajectory.
Source: NBC News
Featured News
Microsoft Defends Game Pass Price Hike in Response to FTC Criticism
Jul 22, 2024 by
CPI
SEC Launches Interagency Securities Council
Jul 22, 2024 by
CPI
Congress Demands Answers from CrowdStrike CEO Following Massive Global Outage
Jul 22, 2024 by
CPI
Dutch Competition Regulator Confronts Meta Over ‘Free’ Subscriptions
Jul 22, 2024 by
CPI
EU Antitrust Regulators Accept Vifor Pharma’s Pledge to Halt Disparagement of Rival
Jul 22, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Private Equity Roll-Up Schemes
Jun 28, 2024 by
CPI
The FTC’s Focus on Private Equity is Warranted
Jun 28, 2024 by
CPI
Unraveling the Roll-Up: Private Equity’s Misunderstood Investment Strategy
Jun 28, 2024 by
CPI
Antitrust Focus on Private Equity Funds and Serial Acquisitions
Jun 28, 2024 by
CPI
Private Equity Roll-Ups Amidst Heightened Antitrust Enforcement
Jun 28, 2024 by
CPI