Skydance and National Amusements, a blockbuster deal in the making

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In a twist worthy of a Hollywood script, Skydance is on the brink of merging with National Amusements, reviving a deal that seemed dead just weeks ago. According to insiders, the controlling shareholder, National Amusements, has sent the deal to Paramount’s special committee for review and approval.

This high-stakes drama has already sent Paramount shares soaring by 9% on the news of the potential merger. The deal, if finalized, will see Shari Redstone receive a reduced consideration of $1.75 billion, while other financial terms remain unchanged. Skydance will acquire roughly half of Paramount’s controlling shares at $15 per share, totaling $4.5 billion, and will also contribute $1.5 billion to Paramount’s balance sheet.

Earlier this year, Redstone abruptly halted the initial bid, feeling that Skydance had retraded the deal by demanding a lower payment than initially agreed upon. The revived deal faces competition from other suitors, including a joint bid from private equity firm Apollo and Sony, and a recent proposal from IAC’s Barry Diller.

Paramount’s special committee is currently reviewing the proposal, with a decision expected soon.

As the industry awaits the final verdict, this merger could mark a significant shift in the entertainment landscape, blending the visionary prowess of Skydance with the storied legacy of Paramount.

(Source: NYT | WSJ)

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