David Ellison’s media company, Skydance, is set to merge with Paramount in a $8 billion deal. The merger is expected to be officially announced in the coming days and will see Redstone receiving $2 billion for National Amusements, a holding company with a majority of Paramount’s voting shares. Skydance will also acquire around 50% of Paramount class B shares and allocate $1.5 billion towards Paramount’s balance sheet. This development is significant as it would establish Ellison as a major player in Hollywood.
The merger has been supported by investment firms RedBird Capital Partners and KKR, who have shown their preference for this deal over others that were offered to Paramount, including one from Apollo Global Management and Sony Pictures. Despite other offers being made, Redstone has shown a preference for the Skydance deal as it would keep Paramount intact.
Paramount has received other offers but the Skydance deal seems to have caught Redstone’s eye. The upcoming annual stockholder meeting is expected to take place without a shareholder vote due to the nature of this transaction. In April, Paramount announced a change in leadership with CEO Bob Bakish stepping down and being replaced by a team of senior executives known as the “Office of the CEO.” While Paramount has yet to comment on the merger, Skydance has not responded to requests for comment from Business Insider.
