Shockwaves hit Hollywood today as Paramount’s highly anticipated merger with Skydance Media dramatically falls apart! After months of nail-biting negotiations, the powerful Redstone family has sensationally axed the deal, leaving the entertainment world in utter disbelief.
Just when it seemed like the merger was a done deal, the Redstones pulled the rug out from under Skydance! Despite Skydance Media sweetening the offer, a special committee of Paramount Global’s board members approving it, and the industry bracing for a seismic shift, National Amusements, controlled by the enigmatic Redstone family with a 74% stake, slammed the brakes on the merger.
The drama doesn’t end there! CNBC had reported last April that a merger was imminent, even though Spectrum Cable TV posed potential hurdles. Paramount and Spectrum recently ironed out a deal to keep Paramount networks on Spectrum Cable TV and integrate some streaming services. This agreement seemed to clear the path for the Skydance merger, but in an astonishing reversal, the deal is now dead.
In a jaw-dropping twist, Shari Redstone turned down a whopping $27 billion cash offer! Variety reported in April that Apollo Global Management’s generous offer was snubbed by the driving force behind Paramount Global. The Redstone family, who favored the Skydance deal, is now apparently looking to sell their entire 77% ownership of Paramount instead of merging.
The power struggle intensifies as the Redstone family eyes a complete exit! With their ironclad control over Paramount, the Redstones’ decision is pivotal. They hold 77% of the voting shares, and without their approval, no merger can proceed. Now, it looks like they’re gearing up to sell their control of Paramount, adding another dramatic chapter to this unfolding saga.
Adding fuel to the fire, a multi-billion dollar offer has reportedly emerged for National Amusements! Any potential sale or merger would encompass Paramount’s entire media empire, spanning cable TV juggernauts like Nickelodeon, Comedy Central, and MTV, as well as numerous movie theaters.
Talks that started in November 2023 have come crashing down in June 2024! The entertainment industry is in turmoil, grappling with plummeting cable TV viewership and a streaming sector struggling to stay profitable. Paramount+, among others, is fighting to stay afloat in these stormy seas.