Skydance Media CEO considering all cash bid for Paramount parent National Amusements, merger on cards
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- January 11, 2024
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Skydance Media CEO, David Ellison, is reportedly considering an all cash bid to acquire National Amusements, the parent company of entertainment giant Global, Reuters reported on January 10 citing sources. The report confirmed an earlier report by the Wall Street Journal on the same development. If successful, Ellison may secure control of National Amusements with financial support from Skydance's existing investors, including The Ellison family, RedBird Capital Partners, and .
Subsequently, there are intentions to pursue a merger between Paramount Global and Skydance, known for producing films such as "Top Gun: Maverick" and "Mission: Impossible Dead Reckoning Part One." Early Stage Talks However, it's essential to note that discussions are in the early stages, and there is no certainty that a deal will be reached, as cautioned by the source.
frequently receives expressions of interest in acquiring Paramount Pictures, renowned for its classic film library, including “Star Trek," “The Godfather," and “Indiana Jones." Shari Redstone, who controls Paramount, has been hesitant to part with the prestigious studio. Nevertheless, the global entertainment industry's challenges have significantly impacted the company's value, with over $16 billion in losses since the 2019 CBS and merger.
The current market capitalization stands at $9.4 billion, lower than Viacom's pre merger valuation. Despite the reluctance, sources close to Redstone suggest she sees the company as "grossly undervalued" and would consider a deal that "makes sense", the report added. Analysts estimate value at $38.8 billion, with individual sales of its networks, production assets, and DTC business potentially yielding about $38 per share.
Previous Deal Discussions In December 2023, reports revealed discussions between Warner Bros Discovery CEO David Zaslav and Paramount CEO Bob Bakish regarding a potential deal. National Amusements, with a 77 percent stake in Paramount's voting shares, also controls CBS, , Comedy Central, and owns 800 film screens in the United States.
The report added that National Amusements and Larry Ellison did not respond to queries, while Paramount has declined to comment on the matter. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.