Paramount investor Mario Gabelli 'may not sell stock' in proposed Skydance merger
What concerns did Mario Gabelli have about the Skydance merger?
Mario Gabelli, a key voting shareholder in Paramount's holding company, had concerns about the Skydance merger, primarily regarding the treatment of minority shareholders2. He was against a sale of Paramount to Apollo Global Management and preferred the company to stick with its turnaround strategy. Gabelli also had doubts about whether the Skydance deal would clear with the FCC.
How did Shari Redstone's stance on the Skydance proposal change?
Shari Redstone initially supported the Skydance merger proposal but later changed her stance, leading to the cancellation of the deal. The reasons behind her change of heart remain unclear but may include concerns about legal liability, disputes over voting rights, and a desire to maintain control over her family's media empire.
What are the terms of the new Skydance deal for minority shareholders?
The new Skydance deal for minority shareholders includes a $2 billion payment to Shari Redstone for National Amusements and a $4.5 billion buyout of nearly 50% of Paramount's class B shares at $15 per share1. Skydance and RedBird Capital will also contribute $1.5 billion in cash to reduce Paramount's debt.