Skydance Deal In Hand, Paramount Lays Out What Happens If A Rival Offer Emerges
How is Skydance valued in the all-stock transaction with Paramount?
In the all-stock transaction with Paramount, Skydance is valued at $4.75 billion. Skydance equity holders will receive 317 million Class B Shares valued at $15 per share.
What is the purpose of the "go shop" period in the merger?
The "go-shop" period in the merger allows Paramount to seek out competing offers even after it has already received a firm purchase offer from Skydance1. This provision is meant to help the board of directors fulfill its fiduciary duty to shareholders and find the best deal possible4. The duration of the "go-shop" period is usually about one to two months.
How long is the initial "go shop" period set for?
The initial "go shop" period for Paramount's planned merger with Skydance is set for 45 days from the announcement of the deal, which was unveiled on a Sunday night. The go-shop period runs through 11:59 p.m. ET on August 21 and can be extended through September 5 if good-faith talks are underway for a better offer.