Skydance Media is considering walking away from its offer for Paramount Global unless controlling shareholder Shari Redstone provides a firm commitment. The exclusivity window for discussions ends Friday and won’t be extended, with Paramount shares rising following reports of Apollo Global Management and Sony Pictures expressing interest in acquiring the company. The Skydance consortium is looking for Redstone to reaffirm her commitment to their deal amidst competition from Apollo and Sony.
The consortium, backed by private equity firms RedBird Capital and KKR, has been waiting for word from Paramount’s special committee on whether they will recommend their bid to Redstone. Skydance is not interested in serving as a stalking horse offer for Apollo and Sony and may walk away depending on Redstone’s response. The parties involved have declined to comment on the situation. Apollo and Sony recently made an offer for Paramount, which is currently being considered by the special committee.
As part of Skydance’s latest deal, Redstone may take less than $2 billion for her controlling stake in Paramount, lower than their initial offer. The consortium is contributing additional capital to pay Class B shareholders at a premium to the undisturbed trading price. Redstone and Skydance would contribute $3 billion total, with most going to Class B shareholders. Skydance’s valuation in the deal remains around $5 billion, but it is unclear if the Apollo-Sony offer provides the same premium to Redstone.
Previously, Redstone rejected an offer by Apollo in favor of exclusive talks with Skydance, as she preferred a deal that would keep Paramount together. Skydance’s offer aligns with Redstone’s preference, while a private equity firm would likely break up the company. The outcome of the negotiations between Skydance, Redstone, and Paramount’s special committee remains uncertain, as both Apollo and Sony and the Skydance consortium are vying for control of the company.
The competition for Paramount Global continues as Skydance considers its next steps and awaits a firm commitment from Shari Redstone. The consortium’s valuation and willingness to work with Redstone may ultimately determine the outcome of the negotiations. Despite the uncertainty surrounding the deal, Paramount’s shares have risen in response to the latest developments. The eventual decision on the acquisition of Paramount will have significant implications for the future of the company and its stakeholders.
The parties involved, including Skydance, Redstone, and Paramount’s special committee, have refrained from commenting on the situation, indicating the sensitivity and complexity of the negotiations. Skydance’s willingness to walk away from its offer underscores the competitive nature of the bidding process, with Apollo and Sony also making their interests known. The final decision on the acquisition of Paramount Global will shape the future of the company and the entertainment industry as a whole, highlighting the significance of the ongoing negotiations for all parties involved.
