Paramount, Skydance agree to terms on $8B merger deal: report
How much is Skydance paying for Paramount's parent company, National Amusements, and what does this entail for the ownership structure?
Skydance is paying $2 billion for Paramount's parent company, National Amusements, which is controlled by majority stakeholder Shari Redstone. As part of the deal, Skydance will buy out nearly half of Paramount's class B shares for $4.5 billion, giving shareholders a stake in the newly formed company. Skydance, which has the backing of private equity firms RedBird Capital and KKR, will also pay down Paramount's debt by adding $1.5 billion in cash to the studio's balance sheet.
The ownership structure will be as follows: Skydance and Redbird will own two-thirds of Paramount, while the remaining third will be controlled by class B shareholders.
What are the main terms of the merger agreement between Paramount Global and Skydance?
The main terms of the merger agreement between Paramount Global and Skydance are as follows:
- Skydance, founded by David Ellison, will pay $2 billion for Paramount's parent company, National Amusements, which is controlled by majority stakeholder Shari Redstone.
- Skydance will buy out nearly half of Paramount's class B shares for $4.5 billion, at $15 per share. This will give shareholders a stake in the newly formed company.
- Skydance, backed by private equity firms RedBird Capital and KKR, will also pay down Paramount's debt by adding $1.5 billion in cash to the studio's balance sheet.
- The merger values Paramount at $8 billion.
- The deal does not require a vote from shareholders.
- Skydance and Redbird will own two-thirds of Paramount, while the remaining third will be controlled by class B shareholders.
These terms are based on a report by CNBC and are subject to change or further developments.
Who are the private equity firms backing Skydance in this merger, and what role do they play?
The private equity firms backing Skydance in this merger are RedBird Capital and KKR. They play a significant role in the deal as they provide financial support and resources to facilitate the merger. Their involvement helps strengthen Skydance's position and enables the acquisition of Paramount's parent company, National Amusements, as well as the merger with Paramount Global. Additionally, these firms help in paying down Paramount's debt by adding $1.5 billion in cash to the studio's balance sheet.