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The owner of Channel 5 in the UK, Paramount agrees to an $8bn (£6.3bn) merger with a billionaire tech heir, signalling an end to a months-long takeover saga. The media giant, previously known as Viacom and then ViacomCBS, and is world famous for its TV business and film studio has reportedly agreed to the terms of a merger with Skydance, a company set up by David Ellison, whose father is Larry Ellison, the Chief Technology Officer of Oracle. Towards the end of 2023, David Ellison’s entertainment company Skydance emerged as a potential bidder for the company amid growing interest from rival studios: - Harry Potter maker Warner Bros. had also been in talks about merging - Byron Allen, a high-profile US film and TV producer, also tabled a $14.3bn offer - More recently Sony Pictures was looking at agreeing a deal in partnership with private equity firm Apollo Global Management Skydance and Paramount have successfully collaborated on projects. The Top Gun: Maverick film was one of many hits made by Skydance, which also includes Mission: Impossible – Ghost Protocol. Paramount Global also controls a cluster of television channels, including: US network CBS, Nickelodeon, MTV, and Comedy Central amongst many others. Skydance’s bid had been backed by private equity firms KKR and RedBird Capital. According to CNBC, Shari Redstone would receive $2 billion for National Amusements, which has 77% of the voting power over Paramount. Redstone has yet to officially decided whether to go forward on the deal, and the terms are still to be worked out. However, if she does agree, it would end her family’s decades-long control over the media conglomerate and its predecessor companies. #television #media #mergers https://bit.ly/3RddFUT

NEWS OF THE DAY! Skydance Media Contemplates All-Cash Offer for National Amusements, Eyes Paramount Global Merger 1.     Skydance Media is in discussions to make an all-cash offer for National Amusements, the parent company of Paramount Global (PARA). 2.     Skydance Media CEO David Ellison is considering a bid with financing assistance from his billionaire father, Larry Ellison. 3.     The potential deal involves purchasing at least a majority stake in National Amusements from Shari Redstone and her family. 4.     If successful, the Ellison-led group aims to merge Paramount Global with Skydance in a subsequent transaction. 5.     Talks with National Amusements are in the early stages, and the outcome remains uncertain; any deal could still fall apart. 6.     This development follows previous reports of Skydance Media exploring Paramount's assets and discussions between Warner Bros. Discovery and Paramount Global regarding a potential merger. =>Please follow Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance.

Paramount and Skydance, led by David Ellison, are close to merging pending approval from major shareholder Shari Redstone. Skydance's offer involves buying out a significant portion of National Amusements, Paramount's parent company, for $2 billion. The merger would value the deal at around $8 billion. Skydance and RedBird Capital Partners plan to contribute $1.5 billion in cash to reduce debt, with Skydance also purchasing nearly 50% of class B Paramount shares. This deal, not requiring shareholder vote, would reshape Paramount's ownership structure. Despite some investor pushback, Paramount's minority shareholders are considering multiple offers, including one from Sony Pictures Entertainment and Apollo Global Management, Inc. Redstone, while historically opposed to breaking up Paramount, is open to deals in shareholders' best interest. Other potential bidders, including Hollywood producer Steven Paul, are also in the mix. Paramount also has the option to continue independently under its new Office of the CEO. While Paramount's shares have seen recent increases, the company's market performance has been fluctuating, with a recent credit rating downgrade. Follow Amanda Newman to stay up to date with technology. https://lnkd.in/eQYQetKB

Paramount and its deals Warner Brother Discovery merger talk with Paramount went on for months but was put to a halt. If the two companies had merged, then it would have improved the cost structure. But growth? Not so much (per John Peters according to Variety article). https://lnkd.in/g9tiBp-v Comcast did say it’d be interested in a commercial partnership, like a bundle deal or merging Peacock and Paramount+ at one point. Seemed viable since the two companies are JV partners for SKyShowtime in European markets. https://lnkd.in/geix5PrF Byron Allen also submitted a bid valued at $30 billion. Apollo Global Management offer $11 billion at first for Paramount Pictures, but later made a $27 billion offer to acquire Paramount Global only to get declined. https://lnkd.in/g4jcQHCN https://lnkd.in/gMyRSF-d Now, Paramount/National Amusement agreed to an 30-day window negotiating deal  with Skydance: (1) Skydance merge with Paramount Global and (2) NA’s Redstone to sell her stake to Skydance (77% of Paramount’s voting shares).  https://lnkd.in/g-x7NACA https://lnkd.in/gnQ8NK8W Some shareholders are not happy about this deal. How will the investors and Skydance be treated? Would the investors also get a chance to obtain Redstone’s voting stocks? If not, it seems like they’re ready to sue. Meanwhile four board members of Paramount Global are stepping down in the midst of this M&A. While some say this was planned to create a smaller group, others speculate that they’re looking for an exit before lawsuits come their way from this deal.  https://lnkd.in/gW4Sp4yb As much as Redstone aims to find a deal that maximizes values for the shareholders, ensure Paramount’s future and maintain her father’s legacy, she is also looking for a deal that would get her cash to pay taxes for inheriting her father’s share ($7 million this year) and $37 million debt to pay Wells Fargo by March. Articles say Skydance-NAI transaction would give Redstone $2 billion. https://lnkd.in/gsAAPnTF https://lnkd.in/gSn59vzK  It seems like the rest of Paramount teams are focusing on providing the best quality of entertainment, with Showtime streaming service shutting down as it joins Paramount+ and the release of its lineup at CinemaCon. #paramount #hollywood

The Paramount-Skydance merger will be far from the last significant entertainment M&A in the next few years. We can expect more M&A, bundling, and JVs as streamers place a greater focus on profitability and strategic content offerings in the long-term.

The recent $26bn all-cash offer from Sony will be favourable to shareholders but given the Biden administration's record of aggression on big corporate mergers, I don't expect any takeover bids for Paramount to go swimmingly. After all, we have seen a fair amount of big players in the film industry who have only gained bigger market share in recent years. #media #filmindustry #business https://lnkd.in/gt-9PTu4

£8 Billion Merger Between Skydance and Paramount - The media landscape is poised for a transformation with the £8 billion merger between Skydance Media and Paramount Global, culminating in the formation of New Paramount. This merger encompasses two major steps: acquiring National Amusements, Inc. (NAI), which holds a controlling interest in Paramount, and merging Skydance with Paramount. - The financial structure of the deal is substantial, with the Ellison Family and RedBird Capital Partners injecting over £8 billion into the venture. Under the terms, Paramount Class A shareholders will receive £23 per share, while Class B shareholders will receive £15 per share, with a total of £4.5 billion available in cash for public shareholders. Skydance, valued at £4.75 billion, will merge into Paramount in an all-stock transaction, resulting in the Skydance Investor Group holding a majority stake in the new conglomerate. - This merger aims to capitalize on Skydance’s technological capabilities and operational expertise to bolster Paramount’s content delivery across its digital platforms like Paramount+ and Pluto TV, as well as its traditional linear networks. The integration of these assets is expected to enhance the overall value proposition for audiences and advertisers alike. - David Ellison will helm New Paramount as Chairman and CEO, with Jeff Shell serving as President. Their leadership will focus on driving profitability, ensuring stability, and maintaining creative independence. The new leadership team is anticipated to bring innovative strategies and a dynamic approach to content creation and distribution. - The deal's complexity required the expertise of several financial and legal advisors. RedBird Capital Partners, Bank of America, Moelis & Company, and The Raine Group provided financial advice to Skydance and the Investor Group Services (IGS). Latham & Watkins and Sullivan & Cromwell LLP offered legal counsel to Skydance. Rothschild & Co served as the financial advisor for Paramount Global, with Simpson Thacher & Bartlett LLP handling the legal aspects. - Set to finalize in the first half of 2025, the merger is subject to regulatory approvals and customary closing conditions. This consolidation promises to position New Paramount for sustained growth and innovation in a rapidly evolving media landscape, leveraging the strengths of both entities to navigate future challenges and opportunities. #skydance #paramount #media #merger #digitalplatforms #contentdelivery #investment #innovation #newparamount #entertainment #streamingservices #regulatoryapproval #leadership #aquisition

Paramount Global's parent company, National Amusements, and Skydance Media have agreed to merge, despite having ended merger discussions less than a month ago. Paramount, which owns Paramount Pictures, CBS, and various media brands, announced the merger with Skydance, founded by David Ellison, son of Oracle founder Larry Ellison. The deal, which addresses speculation about Paramount's future, follows a $26 billion bid from Sony Pictures and Apollo Global Management. Skydance will first purchase National Amusements for $2.4 billion, gaining control of 77% of Paramount’s voting shares. Non-voting shareholders will receive $15 per share or one non-voting share in the new company. Class A shareholders will receive $23 per share or 1.5333 non-voting shares. Paramount will then merge with Skydance in a deal valuing Skydance at $4.75 billion. Competitors have 45 days to submit alternative offers. The merger is pending regulatory approval. This merger unites Paramount, known for classics like ‘Titanic’ and ‘The Godfather,’ with Skydance, a newer company behind hits like ‘Top Gun: Maverick.’ David Ellison will become Paramount's chairman and CEO, and Jeff Shell, former NBCUniversal CEO, will be president. Shari Redstone, who controls National Amusements, emphasised continuing her father Sumner Redstone's legacy and ensuring Paramount’s future amid industry changes. Negotiations balanced the interests of voting shareholders, controlled by Redstone, and non-voting shareholders like Berkshire Hathaway and Vanguard. Following the failed merger talks in June, Paramount had announced cost-cutting measures and plans for partnerships or asset sales. Skydance and RedBird identified $2 billion in potential savings. Paramount reported a $417 million loss on $7.6 billion revenue last quarter, while Skydance expects $1 billion in annual revenue in 2024. The merger is part of ongoing media industry consolidation as companies like Paramount and CBS compete with larger rivals.

Paramount Global and Skydance Media are nearing a merger deal. One significant hurdle that remains is Paramount Global’s renewal agreement with Charter Communications for CBS and its cable networks. That deal is relevant to the value of Paramount Global, which could take a hit if Charter drops the networks or agrees to a lower carriage rate. This development signifies a significant consolidation within the media industry, reflecting ongoing trends of mergers and acquisitions as companies strive for scale and adapt to changing consumer behaviors, competition from streaming platforms, and evolving content creation and distribution methods. #marketing #advertising #SkyDance #Paramount