Paramount Global to enter into exclusive merger talks with Skydance, source says

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Paramount News

Skydance,Board,Offer

The deal talks are more advanced than the offer from Apollo and if successful, would end Shari Redstone’s control of the media empire built by her father

board agreed on Wednesday to enter into exclusive merger talks with Skydance Media, favouring the independent studio over a $26-billion offer from private equity firm Apollo Global Management, a person familiar with the matter said.

A special committee of Paramount’s board elected “to pursue the bird in hand,” rather than chase a deal “that might not actually come to fruition,” said the person with knowledge of the board’s action. Skydance is led by David Ellison, son of Oracle co-founder Larry Ellison, and is seeking to buy National Amusements, the Redstone family’s holding company, which directly or indirectly owns about 77 per cent of Paramount’s voting class stock.Two people familiar with Apollo’s offer described it as “extremely preliminary,” noting that it was not the result of negotiations or diligence, but rather to “stall” any deal with Skydance.

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