Paramount Global Must Get Skydance Approval for Any Paramount+ Joint Venture or Bundling Deals With Biggest U.S. Streamers
What are the key terms of Skydance Media's takeover of Paramount Global?
Skydance Media's takeover of Paramount Global includes a 45-day window for Paramount to shop around for a better offer, a $400 million breakup fee to the Skydance investor group, restrictions on joint ventures and content licensing involving Paramount+, and approval requirements for certain contractual agreements1. The transaction aims to strengthen Paramount and enhance its balance sheet flexibility, allowing the company to invest in new initiatives and deliver greater cash flow growth.
What is the breakup fee Paramount must pay if the deal falls through?
The breakup fee Paramount must pay if the deal falls through is $400 million.
What restrictions are placed on Paramount+ in the transaction agreement?
The transaction agreement places certain restrictions on Paramount+. Without Skydance's written consent, Paramount is not allowed to enter any joint venture or omnibus content licensing and/or subscriber acquisition/migration arrangement involving Paramount+. Additionally, Paramount may not enter into any new contract regarding the bundling of Paramount+ with any of the top seven third-party streaming services or extend the term of an existing streaming distribution contract by more than one year without approval.