Paramount Global’s stock soared by nearly 15% in the final half-hour of trading on Wednesday, following a report from Bloomberg that Skydance Media, founded by David Ellison, son of billionaire Larry Ellison, had reached a tentative agreement to buy Shari Redstone’s controlling stake in the company. The struggling entertainment giant has been subject to numerous acquisition talks in recent months, and this reported deal has sparked investor optimism.
The Bloomberg report, citing unnamed sources, stated that Skydance is in talks with independent directors at Paramount in a provisional agreement to acquire the Redstone family’s holding company, National Amusements, which holds nearly 80% of voting shares in Paramount. The terms of the deal are still undisclosed, and despite the report, sources told Variety that no sale agreement had been finalized as of Wednesday. Additionally, The Wall Street Journal reported that Skydance and Paramount have entered an exclusive 30-day negotiating period and have agreed on terms, with the condition that Skydance can successfully merge its movie studio with Paramount’s.
The surge in Paramount Global’s stock price on Wednesday brought it to $13.52 per share, a level not seen since February but still significantly below its peak of over $90 in March 2021. This development comes amid ongoing financial struggles for Paramount, with the company’s market capitalization plummeting from $25 billion to $9.2 billion over the past three years, along with $14.6 billion in debt. The reported streaming losses of $490 million in the fourth quarter add to the challenges facing the conglomerate.
Larry Ellison’s estimated net worth stands at $155.5 billion, primarily derived from his tech company Oracle. His son David Ellison’s Skydance, founded nearly two decades ago, has partnered with Paramount Global on projects like “Top Gun: Maverick.” The potential acquisition of National Amusements with its significant stake in Paramount would mark a major milestone for any buyer seeking control of Paramount. Previous offers from firms like RedBird Capital, Apollo Global Management, and Warner Bros. Discovery have also been reported in connection with Paramount.
The possibility of merging the Skydance and Paramount movie studios could involve intricate deal-making, as Skydance is reportedly seeking to acquire most of Paramount’s voting shares rather than a majority stake in the company. While the specifics of the deal remain unclear, industry analysts are closely watching the developments to see how this potential acquisition could impact the future of Paramount Global and the broader entertainment landscape. Paramount and Skydance have not responded to requests for comment on the reported agreement.
