An individual with knowledge told TheWrap that a special committee of Paramount’s board of directors decided to start formal negotiations with Sony Pictures Entertainment and private equity group Apollo Global Management. This decision follows the end of an exclusive negotiation period between Paramount and Skydance, with no deal made by Friday.
A spokesperson for the special committee refused to comment.
Sony Pictures made a joint informal offer with private equity firm Apollo Global Management of all cash for Paramount, stepping into the race. $26 billionThere were public statements of support from director James Cameron and Endeavor CEO Ari Emanuel for David Ellison’s Skydance acquiring Paramount in an interview with the Financial Times, in contrast to the unsuccessful negotiations with Skydance. The committee also pushed for further negotiations with Skydance, despite the exclusive negotiating window closing with no deal.Skydance has been discussing a potential two-step deal to acquire Paramount through controlling shareholder Shari Redstone’s majority stake in National Amusements.
However, there has been significant opposition from minority shareholders in Paramount, leading to Skydance offering a $3 billion cash injection and premium for non-voting class B shares.
Any deal to purchase Paramount would also face governmental regulation, including restrictions on foreign ownership of broadcast television networks, which have become stricter under President Joe Biden’s administration.
As Redstone and Paramount consider their options, CEO Bob Bakish resigned from the company this past week. An interim executive committee has taken over and is working on a long-term strategic plan.
This information was first
The Paramount board’s special committee met over the weekend on the matter, after allowing an exclusive negotiating window with Skydance Media to lapse reported by the New York Times This story includes additional reporting from TheWrap’s Jeremy Fuster.
This news was first reported by the New York Times.
This story includes additional reporting from TheWrap’s Jeremy Fuster.
