Paramount Stock Advances on Report of Skydance Media Deal

Paramount Global (PARA) shares jumped Monday on a report that the entertainment giant had agreed to a revised purchase offer by Skydance Media.

CNBC said the updated deal, which was first reported last week, would have David Ellison’s Skydance, along with private equity firms RedBird Capital and KKR, acquiring nearly half of Paramount’s Class B shares at $15 each. That would be a 26% premium to Paramount’s closing price on Friday.

The Wall Street Journal on Sunday reported that Skydance Media was giving Paramount’s nonvoting shareholders an option to cash out at a premium of around $15 a share.

The network noted the proposal would have Skydance and its backers buy out Shari Redstone’s National Amusements, which holds a majority stake in Paramount, for $2 billion. Redstone reportedly has yet to agree.

CNBC added if the plan goes through, Skydance and RedBird would own two-thirds of the company, with the rest held by Class B shareholders.

Monthslong Saga for Paramount

The Paramount saga has been playing out for several months, with Skydance and private equity firm Apollo Group Management (APO) separately trying to woo Redstone. In April, The New York Times reported that Apollo had been in discussions with Sony Pictures (SONY) to team up on a bid. 

Shares of Paramount Global, which surged more than 7% to $12.78 as of 10:48 a.m. ET Monday, have yo-yoed this year on the twists and turns of the battle over who would take control. Even with today’s gains, they’re down more than 13% for 2024.