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Paramount’s board is set to agree to merge with independent studio Skydance, a deal that would shift control of the historic Hollywood group from Shari Redstone’s family to billionaire scion David Ellison, said people briefed about the matter.
The board met on Sunday to approve the transaction and a deal could be announced as early as Sunday night, the people added. Skydance has yet to sign an agreement, they said.
The latest move in the tumultuous Paramount negotiation comes just weeks after Redstone blocked a deal with Skydance, which is backed by US private equity groups RedBird and KKR.
Paramount’s special committee, an independent group entrusted with assessing the offer, recommended that the board approve the deal, which Skydance sweetened after the talks collapsed last month, the people said.
The exact terms of the deal were not known but the new offer is expected to give Redstone a bigger payout and legal protection if the transaction is challenged by shareholders, people briefed about the matter said.
The future of Paramount, the Hollywood group behind legendary movies including The Godfather and Titanic as well as iconic television brands such as MTV and CBS, has been in flux for several months.
During a chaotic, highly public bidding process involving several rival bids, Paramount’s chief executive and four board members left the company amid discord with Redstone.
Ellison, Skydance’s chief executive, thought he had clinched a deal with Paramount in June. But Redstone called it off at the eleventh hour.
Redstone controls Paramount through her family’s company, National Amusements, which owns about 10 per cent of the company but holds nearly 80 per cent of its voting rights.
If a deal is consummated between Paramount and Skydance, it would close an 88-year chapter of her family’s involvement in the entertainment business and transfer control to Ellison, whose father Larry is one of the world’s richest people, having co-founded Oracle.
Skydance has produced blockbusters including Top Gun: Maverick, Star Trek Into Darkness and Jack Reacher: Never Go Back.
A representative for Redstone did not immediately respond to a request for comment. Skydance declined to comment.
In the weeks since the previous Skydance deal fell apart, other potential bidders have emerged, including media mogul Barry Diller and Edgar Bronfman Jr, the media executive and heir to the Seagram business.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
