Shares of Paramount Global surged 14.9% during Wednesday’s trading session after Bloomberg reported that the media conglomerate’s special committee of independent directors has entered exclusive talks with David Ellison’s Skydance Media about a potential merger.
The deal would see Skydance acquire control of Paramount through the stake controlled by Shari Redstone’s National Amusements, which owns 77.3% of its Class A (voting) common stock and 5.2% of its Class B common stock. It would then merge with Paramount’s film and TV studio.
National Amusements did not immediately return TheWrap’s request for comment. Representatives for Skydance and Paramount declined to comment.
Skydance first expressed an interest in Paramount’s portfolio of assets, which includes Paramount Pictures, Paramount+, CBS and cable networks like MTV and Nickelodeon, back in December. It proceeded to make a preliminary offer in January for an undisclosed amount.
A potential deal would be financed with help from Skydance’s investors, which include the private equity firms RedBird Capital Partners and KKR, as well as Ellison’s father and Oracle cofounder Larry Ellison. The company, which is valued at more than $4 billion, has been a co-producer with Paramount on projects such as the “Mission: Impossible” franchise and “Top Gun: Maverick.”
In addition to Skydance, Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish in December about a potential merger, though those talks have since been halted. Other potential suitors include Allen Media Group founder Byron Allen, who placed a $30 billion bid including debt for the company, and Apollo Global Management, which placed an $11 billion offer to buy Paramount’s film and TV studio.
