Why Is Shari Redstone so Upset?
What are the main reasons behind Shari Redstone's hesitation to finalize the deal with David Ellison’s Skydance?
Shari Redstone's hesitation to finalize the deal with David Ellison's Skydance can be attributed to several factors:
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Concerns over shareholder lawsuits: Redstone is reportedly unhappy with Skydance's refusal to indemnify her in the event of shareholder lawsuits, which are likely to arise if the deal goes through. Initially, these lawsuits were expected from non-voting "Class B" shareholders who were unhappy with the deal's structure.
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Reduction in purchase price: Skydance sweetened the offer for non-voting shareholders, which reduced the purchase price for Redstone's National Amusements from $2.5 billion to $2.25 billion. This could be another reason for her hesitation.
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Uncertainty over Skydance's intentions: Although Ellison suggested that his buyer group would keep the Paramount empire intact, there is no clear indication of Skydance's actual intentions, causing Redstone to be cautious.
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Emotional attachment to the company: Redstone's hesitation could also be due to the emotional aspect of giving up control over the company built by her father, Sumner Redstone. Sources suggest that the messy and lengthy deal-making process might have proved overwhelming for her.
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Alternative offers and options: Redstone might be considering alternative offers and options, such as selling some parts of the company herself or exploring potential partnerships with other companies like NBCUniversal.
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Steven Paul's offer: Redstone's friend, Steven Paul, has offered to buy a majority interest in National Amusements, which might be an attractive alternative for her.
These factors combined have contributed to Shari Redstone's hesitation in finalizing the deal with David Ellison's Skydance.
Why has John Lasseter been absent from work at Skydance’s animation unit, and how has this impacted the negotiations?
John Lasseter, the leader of Skydance's animation unit, has been absent from work for several weeks due to recovering from surgery4. He has been working from home during this time. This absence has not directly impacted the negotiations between Skydance and Paramount, but it has raised questions in the animation community and added a layer of uncertainty to the situation. Lasseter's health is considered important, as any material change could potentially affect Skydance's deal with the streamer.
How might the potential acquisition of CBS and Paramount Global’s TV stations by Warner Bros. Discovery affect the negotiations between Redstone and Ellison?
The potential acquisition of CBS and Paramount Global's TV stations by Warner Bros. Discovery (WBD) could add a new layer of complexity to the negotiations between Redstone and Ellison. David Zaslav, CEO of WBD, has expressed interest in acquiring CBS and Paramount Global's TV stations, either from Redstone or Ellison, depending on the outcome of their ongoing negotiations.
If WBD were to acquire the TV stations, it would significantly impact the structure and value of a potential deal between Redstone and Ellison. The acquisition by WBD could lead to a reevaluation of the terms, potentially causing delays or even derailing the current negotiations.
Additionally, the entrance of WBD into the picture may prompt Redstone to reconsider her options. She may decide to sell some parts of her empire, such as the TV stations, and explore other opportunities like a streaming partnership with NBCUniversal. This could potentially change the dynamics of the ongoing discussions with Ellison and Skydance.
In summary, the potential acquisition of CBS and Paramount Global's TV stations by WBD could have a significant impact on the negotiations between Redstone and Ellison, possibly leading to a reevaluation of the terms, delays, or even a change in the direction of the deal.