Paramount stock drops after company agrees to Skydance merger

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Shari Redstone News

Skydance Media,National Amusements,Holding Company

Paramount's messy merger journey has finally reached its conclusion.

Paramount shares dropped about 3% in midday trading the following day as investors digested the terms of the new deal, which includes Skydance first acquiring NAI for $2.4 billion in cash before completing a full merger.

Skydance, which will be valued at $4.75 billion following the all-stock deal's completion, said it will inject $6 billion of cash into Paramount with $1.5 billion going directly into its debt-ridden balance sheet. "I think a lot of us in the business know we got to run these businesses in a different way as they decline," he continued, adding the goal is to focus on future cash flow generation.

"One area that remains unclear is how much of the new company Skydance would hold onto," Third Bridge analyst Jamie Lumley wrote in a note to clients. "We’ve heard from our experts for a while that the best strategy for Paramount is to spinout non-core assets."over the Skydance deal. He has since been replaced by an “Office of the CEO” consortium made up of three company division heads.

BlackRock acquired Preqin for $3.2 billion this week, making Mark O'Hare and his wife billionaires. Now, he's passing some of the wealth to employees.The farm-equipment manufacturer will lay off about 600 employees across three US factories as it shifts production to a newly planned facility in Ramos, Mexico.

“I think, a year from now, we have three $4 trillion market cap companies: Nvidia, Apple, Microsoft,” Wedbush tech analyst Dan Ives told Fortune.

 

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