Breaking: Paramount, Skydance Media Enter Exclusive Negotiating Period Bringing Sides Closer to Merger
A new report indicates the process of merging Paramount and Skydance Media could be picking up steam.
UPDATE (2:08 p.m. ET): In an exclusive report from The Wall Street Journal, Jessica Toonkel reported that members of Paramount Global’s board and Skydance Media have agreed to enter an exclusive period of negotiations for the latter company to take over majority ownership of the latter. The period of exclusivity will last for 30 days while the two sides attempt to come to an agreement for Skydance’s founder David Ellison to purchase enough shares to control the company.
Continue to follow this major story on The Streamable as we cover all angles over the next month of exclusive negotiations between the two sides.
After months of speculating and making educated guesses about Paramount Global’s next move, it appears that some clarity is taking shape in the media giant’s recent merger and acquisition talks. A new report from the New York Times indicates that Paramount executives are discussing the possibility of entering exclusive negotiations with Skydance Media founder David Ellison to merge the two companies under Ellison’s control. Doing so would be the surest sign yet that ownership of Paramount is getting ready to change hands.
- Apollo Global Management is still considering offers for Paramount Global and has offered $11 billion for its movie studio.
- Ellison wants to buy all of Paramount’s assets and merge them with Skydance, a deal favored by controlling shareholder Shari Redstone.
- Skydance and Paramount have partnered to produce and distribute many films, including the “Mission: Impossible” and “Top Gun” franchises.
Despite SKydance and Paramount reportedly being on the verge of taking the next step together, the Paramount board has reached no official decision. Therefore, the company could pivot away from Skydance to other offers on the table. However, moving to an exclusive negotiation period with Ellison would be a significant step toward eventually closing a deal, since it would mean that there is enough in Ellison’s offer to make Paramount comfortable with trying and hammer out an actual agreement.
Apollo Global Management’s offer of $11 billion to purchase Paramount’s TV and movie studios is still floating out there, and the Times reports that the private equity firm is mulling its options in regards to the potential of making another offer that could be more appealing to Paramount brass.
Reports have indicated that Paramount’s controlling shareholder Shari Redstone favors the Ellison/Skydance offer because it does not break up the company. Skydance and Paramount have teamed on a number of film projects, including “Mission: Impossible,” “Top: Gun” and “Transformers” franchises, so the two companies already share positive — and profitable — working relationship.
What Would New Company Look Like if Skydance Buys Paramount?
If the deal between Paramount and Ellison does eventually go through, Paramount and Skydance will be merged into a single company. Reports indicate that Ellison already has several former media bigwigs lined up to manage Paramount’s broadcast and cable networks, such as ex-NBCUniversal CEO Jeff Shell and former CNN boss Jeff Zucker.
When Ellison’s interest in Paramount first became public in January, it was reported that if he was able to do a deal with the company, he would take its stock private. That would mean that Paramount’s shares would no longer be available on public markets, and Ellison could take the time to remake the company however he would like without having to worry about plunging stock prices; since the start of 2024, Paramount’s stock has dipped 18%.
If Ellison does take Paramount private, what will that mean for its streaming service Paramount+? Big changes could be on the way for the platform under Ellison’s purview, as he’ll essentially have the power to do anything he wants with the streamer. Will he crack down on password sharing, despite assurances from current company officials that no such policies are currently planned? Will he move up the timeline of planned price increases for the streamer? Will he continue removing content from the Paramount+ streaming library? All of these possibilities are on the table, as whichever company acquires Paramount may see its efforts to prioritize its streamer as being too lackluster up until now.
There’s still no guarantee that Ellison and Paramount will ever reach an agreement, but if the two entities begin private negotiations in the coming weeks, it’s a good indicator that a deal is not far off. Audiences might finally get some clarity on what will happen to Paramount+, as well as the company’s cable and broadcast channels like CBS, Nickelodeon, Paramount Network, and other Paramount-owned assets.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr. and more. The lineup includes “1883,” “Tulsa King,” “Star Trek: Discovery,” Nickelodeon’s “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.