Recently, Skydance Media made a revised offer to Paramount Global to purchase a specific number of non-voting Paramount shares at $15 each. This new proposal represents a significant premium of approximately 26% to the closing price on Friday.
Following the revised offer from Skydance Media, a special committee of Paramount's board has agreed to recommend a deal with the media company. This decision came after Skydance sweetened its offer, providing improved terms for both voting and non-voting Paramount shareholders.
National Amusements, the parent company of Paramount, has raised concerns regarding legal protection in the event of a lawsuit. They are looking for assurances from Skydance Media before finalizing any deal with the company.
It is still uncertain whether Paramount will be given the opportunity to explore other offers through a “go-shop” period or if the deal with Skydance will proceed to a shareholder vote. Skydance has committed to providing a minimum of $1.5 billion to help pay down Paramount's existing debt obligations.
While Skydance Media has been in negotiations with Paramount for months, a new contender has entered the picture. Sony Pictures Entertainment, in partnership with Apollo Global Management, made a non-binding all-cash offer of $26 billion. Although they have since taken a step back from this initial proposal, their interest in Paramount remains a significant factor in the ongoing negotiations.
The revised offer from Skydance Media has the potential to reshape the future of Paramount Global. With competing bids on the table and various stakeholders expressing their preferences, the final decision rests on Paramount's board. The coming days will likely see further developments in this high-stakes merger drama.