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Paramount Could Acquire Skydance In $5 Billion All-Stock Deal, WSJ Reports

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As reported by Reuters via Yahoo Finance, a potential blockbuster deal between Paramount Global and Skydance Media could see the media giant acquire the independent studio in an all-stock transaction valued at around $5 billion, according to a report from the Wall Street Journal.

Under the terms being discussed, National Amusements, which controls Paramount, would receive over $2 billion in cash in the first step of the transaction. Additionally, Skydance could provide a substantial cash infusion to Paramount to help pay down its substantial debt.

The deal talks are more advanced than those with private equity firm Apollo Global Management, which had previously offered Paramount a $26 billion takeover. If successful, the merger with Skydance would end the control of the media empire by Shari Redstone, the daughter of Paramount's founder.

Skydance (@Skydance) / X

Skydance is led by David Ellison, the son of Oracle co-founder Larry Ellison, and is seeking to buy National Amusements, which directly or indirectly owns about 77% of Paramount's voting class stock. The sale is contingent on Ellison's ability to merge Skydance and Paramount Global.

The potential acquisition of Skydance by Paramount would give the combined entity greater flexibility and control over its valuable franchise properties. It would also result in Redstone receiving cash while investors with nonvoting shares would receive stock in the merged company.

The Journal's report highlights the complex dynamics at play in the media industry, with powerful players jockeying for position and control of valuable assets. The potential Paramount-Skydance deal could reshape the landscape and set the stage for a new chapter in the industry's history.

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