Paramount, Skydance merger called off

The potential deal had drawn attention for weeks amid concerns about Paramount's future given its heavy debt load and declining television business. One media report in early June even stated that Paramount and Skydance had agreed to terms of a deal, contingent only on sign-off from Paramount's controlling shareholder, Shari Redstone. A statement from National Amusements merely noted that the two sides 'have not been able to reach mutually acceptable terms' for the deal.

Robert Fishman, an analyst with MoffettNathanson, said the deal's collapse leaves Paramount with the same problems that have long weighed it down, and few prospects for an infusion of cash or new ideas to help turn things around.'Ms.

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