Skydance may drop bid after Sony Apollo offer | Wilnesh News

Skydance Media prepares to abandon its offer Paramount Worldwide That would be without a firm commitment from controlling shareholder Shari Redstone following the latest offer from Apollo Global Management and Sony Pictures, according to a person familiar with the matter.

An exclusive window for discussions between David Ellison’s Skydance, which is backed by private equity firms RedBird Capital and KKR, and Paramount will end on Friday and will not be extended, people familiar with the matter told CNBC’s David Faber. Paramount shares rose following the report.

The consortium has been waiting to hear from Paramount’s special committee to see whether the group will recommend Redstone’s bid to acquire the company. Now, with Apollo and Sony officially expressing interest in acquiring the company for about $26 billion, Skydance Group is looking for Redstone to reaffirm her commitment to the deal.

One of the people said the Skydance consortium was not keen on becoming a successor to Apollo and Sony. However, another person said that according to Redstone, Ellison may be willing to work with her.

Spokespeople for Skydance, Redstone’s National Amusements and Paramount Select declined to comment Friday.

Apollo and Sony made their latest bids on Thursday, CNBC previously reported. A special committee is currently considering the bid, people familiar with the matter said.

As part of Skydance’s latest deal, Redstone may acquire a controlling stake in Paramount for less than $2 billion, which is less than Skydance’s original offer. The consortium is providing additional capital to common Class B shareholders at a nearly 30% premium to the undisturbed trading price of about $11 per share, CNBC reported. According to people familiar with the matter, Redstone and Skydance will contribute a total of US$3 billion, the vast majority of which will flow to Class B shareholders.

Skydance is still valued at about $5 billion as part of the deal, people familiar with the matter said.

Previously, Redstone rejected Apollo’s proposal and instead entered into exclusive negotiations with Skydance. According to previous reports from CNBC, Redstone would prefer a deal that would keep Paramount intact, like Skydance’s offer. Private equity firms may break up the company.