Paramount and Skydance inch closer to a merger as key hurdle looms

Skydance Media and its private equity backers are targeting May to finalize terms on a deal with Paramount Global, sources told CNBC.

Paramount Global's special committee and David Ellison's Skydance Media, backed by private equity firms KKR and RedBird Capital Partners, are narrowing in on how to value Skydance's assets as part of a merger as well as how much equity to add to the company as part of a recapitalization, according to people familiar with the matter.

Skydance's plan is to name Ellison as CEO of Paramount Global and former NBCUniversal CEO Jeff Shell as the president, said two of the people. Current Paramount CEO Bob Bakish would depart the company, the people said. Spokespeople for Apollo, the Paramount Global special committee, Paramount Global, and Skydance's consortium declined to comment.One significant hurdle that remains is Paramount Global's renewal agreement with Charter Communications for CBS and its cable networks. That deal is relevant to the value of Paramount Global, which could take a hit if Charter drops the networks or agrees to a lower carriage rate, the people said.

There are signs Charter could prove to be a tough negotiator with Paramount Global: Last year the cable provider, the second-largest in the U.S., brieflywhen renewal negotiations between those two companies faltered. Thus far, Bakish has always reached renewal deals with the major pay-TV distributors since taking over as CEO, dating back to his time running Viacom, beginning in 2016.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Paramount Global's board enters exclusive merger talks with Skydance MediaMembers of Paramount Global's board have chosen to enter into exclusive merger talks with Skydance Media, favoring the independent studio over a $26 billion offer from Apollo Global Management. The talks, if successful, would end Shari Redstone's control of the media empire built by her father.
Source: Investingcom - 🏆 450. / 53 Read more »

Paramount shareholders grow increasingly vocal about possible Skydance Media mergerSome Paramount Global investors are speaking out about a possible merger with Skydance Media, calling on the U.S. media conglomerate to look at other options and to treat shareholders equitably if this deal should be inked.
Source: Reuters - 🏆 2. / 97 Read more »