Paramount shares jump as company reportedly close to agreeing a deal with Skydance

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Paramount shares jump as company reportedly close to agreeing a deal with Skydance

) jumped 7.5% at the market open Monday after CNBC's David Faber that David Ellison's Skydance Media is nearing a deal to acquire the mass media and entertainment giant.

Under the proposed terms, Redstone would receive $2 billion for National Amusements, the parent company of Paramount. Moreover, Skydance plans to acquire 50% of B shares at $15 per share. Investors are set to inject $1.5 billion in cash into Paramount's balance sheet, with Skydance-RedBird poised to take a two-thirds stake in Paramount after the transaction closes.

In a note to clients, analysts at Wells Fargo said the revised offer presents a"compelling opportunity" for Redstone to sell to Skydance. The move, they argued, would"make everyone reasonably happy and maintain the Paramount legacy."Scan QR code to install app

 

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