Simply weeks after Paramount’s controlling shareholder and Skydance abruptly ended merger talks, the 2 sides have reached a preliminary deal to create a brand new Hollywood large, 4 folks acquainted with the negotiations stated Tuesday.
The settlement will nonetheless should be accepted by a particular committee of Paramount’s board of administrators, stated the folks, who spoke on the situation of anonymity as talks resumed.
Paramount — the guardian firm of CBS, MTV and Nickelodeon — and Skydance, the up-and-coming film studio that helped produce “Prime Gun: Maverick,” known as off talks in June simply earlier than a scheduled vote on a merger. Whereas the 2 sides had agreed on financial phrases, Shari Redstone, Paramount’s controlling shareholder by way of its guardian firm, Nationwide Amusements, had clashed with Skydance within the remaining weeks of negotiations.
However the two sides have continued to speak, and now the Paramount board committee will consider whether or not new phrases shall be sufficiently palatable for shareholders, a few of whom pushed again considerably in opposition to the final proposed deal. One seemingly level of focus would be the extent of safety supplied to Nationwide Amusements in occasion of shareholder lawsuits.
On this newest deal, Nationwide Amusements’ fairness could be valued at $1.75 billion, up barely from $1.7 billion within the transaction’s final incarnation, three of the folks stated.
This can be a growing story. Examine again for updates.
