5 things to know before the stock market opens Tuesday
What are the terms of the merger agreed upon by Paramount and Skydance, as reported by CNBC's David Faber?
Paramount and Skydance have agreed to terms of a merger, as reported by CNBC's David Faber. The deal is valued at $8 billion and could be announced in the coming days. The buying consortium, which includes David Ellison's Skydance and private equity firms RedBird Capital and KKR, has agreed to the terms. As part of the deal, Skydance will buy out nearly 50% of Paramount's class B shares at $15 apiece, leaving the holders with equity in the new company5. Skydance and RedBird will also contribute $1.5 billion in cash to Paramount's balance sheet to help reduce debt. Following the deal's close, Skydance and RedBird will own two-thirds of Paramount, and the class B shareholders will own the remaining third of the company.
How many positions has Google decided to cut from its cloud division, and which teams are primarily affected?
Google has decided to cut at least 100 positions from its cloud division. The teams primarily affected by these cuts include sales, operations and engineering, consulting, and "go-to-market" strategy.
Who are the key stakeholders involved in the Paramount and Skydance merger, and what roles do they play in the negotiation process?
The key stakeholders involved in the Paramount and Skydance merger are:
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Paramount Global: The media conglomerate that owns Paramount Pictures, CBS, MTV, Nickelodeon, and other entertainment properties. Paramount's controlling shareholder is Shari Redstone, who holds a 77% stake in the company through National Amusements Inc. (NAI).
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Skydance Media: A film and television production company founded by David Ellison. Skydance has partnered with investment firms RedBird Capital and KKR to pursue the acquisition of National Amusements and merge with Paramount Global.
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Shari Redstone: The controlling shareholder of Paramount Global and president of National Amusements. Redstone has been actively involved in the negotiation process and has the power to approve or reject the merger deal.
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David Ellison: The CEO of Skydance Media, who has been leading the acquisition efforts and negotiations on behalf of Skydance.
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RedBird Capital and KKR: The investment firms backing Skydance Media in its pursuit of acquiring National Amusements and merging with Paramount Global.
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Paramount Global's Board of Directors: The governing body responsible for overseeing the merger negotiations and making decisions in the best interest of the company and its shareholders. The board has a special committee in place to review and evaluate the Skydance offer.
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Paramount Global's Class B (non-voting) shareholders: While they do not have voting power, these shareholders have raised concerns about the merger and would be in line to receive $15 a share, a 26% premium over the company's stock price.
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Apollo Global Management and Sony Pictures Entertainment: Although not directly involved in the Paramount-Skydance merger, this duo has submitted a bid for Paramount Global, providing an alternative option for the company's future.
Each stakeholder plays a crucial role in the negotiation process, with the companies and their representatives working to reach an agreement that satisfies all parties involved. Shari Redstone's approval is essential for the merger to proceed, while the Paramount board and shareholders have the power to influence the terms and conditions of the deal.