The Paramount sign is displayed at Columbia Plaza along Sunset Boulevard in Hollywood, California on March 9, 2023.
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Paramount Skydance and Skydance have agreed on terms of a merger, which could be announced in the coming days, CNBC’s David Faber reported on Monday.
Paramount’s special committee and the buying consortium – David Ellison’s Skydance, which is backed by private equity firms RedBird Capital and KKR – agreed to the terms. Faber said Monday that the deal is awaiting signature from Paramount controlling shareholder Shari Redstone, who owns National Amusements, which owns 77% of Paramount’s Class A stock.
The agreement comes after weeks of discussions and recent competing offers from Apollo Worldwide Management and Sony Pictures.
The deal now calls for Redstone to provide $2 billion to National Amusements, Faber reported Monday. Skydance will acquire nearly 50% of Paramount’s Class B shares for $15 per share, which will give shareholders an equity stake in the new company.
Skydance and RedBird will also inject $1.5 billion in cash into Paramount’s balance sheet to help reduce debt. According to Faber, after the deal is completed, Skydance and Redbird will own two-thirds of Paramount, and Class B shareholders will own the remaining one-third of the company.
This is breaking news. Please check back for updates.
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