Paramount WorldwideThe company’s shares fell 8% on Thursday after CNBC’s David Faber reported that the company would need to raise up to $3 billion in new equity if it were to merge with David Ellison’s Skydance Media, according to people familiar with the matter.
The deal comes as Paramount controlling shareholder and media mogul Shari Redstone is said to be in exclusive talks with Ellison to sell a stake. Bloomberg. The two companies have also reportedly entered into exclusive merger discussions.
Faber said Allison and his partners could offer a substantial equity stake, but that would be dilutive.
when the news comes wall street journal Apollo Global Management reportedly made a $26 billion all-cash takeover bid for Paramount, but it was rejected, although Redstone has yet to find anyone interested in the deal.
Paramount’s stock price rose sharply in Wednesday trading following the reports.
Redstone is looking to sell Paramount as the company has been in talks with Warner Bros. Discovery About its acquisition. The parent company of MTV and CBS has a market value of nearly $10 billion and a net debt of about $13 billion.
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