Paramount Global’s (NASDAQ: PARA) chair, Shari Redstone, will receive $180 million in severance and other benefits on top of millions from the sale of her stock in National Amusements to Skydance Media, Bloomberg News reported on Thursday.
Redstone holds a 20% stake in National Amusements, Paramount’s controlling shareholder, through two trusts in her name and is in line to receive about $350 million from its sale, the report said, citing people with knowledge of the matter.
Skydance CEO David Ellison’s group will also pay off obligations that include a $70 million severance package for Redstone and an unfunded pension liability of $110 million as part of the acquisition, Bloomberg added.
Earlier in the day, Bloomberg reported that software billionaire Larry Ellison will control Paramount (NASDAQ: PARA) after Skydance completes its purchase of the Redstone family’s interest in the film and TV company.
Larry will own 77.5% of National Amusements through a trust and series of corporations, Bloomberg reported, citing a filing with the US Federal Communications Commission.
Larry’s son David will serve as Paramount’s chairman and CEO. He will have operational control of the business, a spokesperson for Skydance told Bloomberg.
Paramount Global and Skydance Media did not respond to Reuters’ requests for comments.
In July, Skydance signed a deal to acquire Paramount in a complex two-step process, with Larry, the co-founder of Oracle Corp, backing the proposal.
Skydance and its deal partners, including RedBird Capital Partners, will acquire National Amusements for $2.4 billion in cash.
Skydance will subsequently merge with Paramount, offering $4.5 billion in cash or stock to shareholders and providing an additional $1.5 billion for Paramount’s balance sheet.
In August, media veteran Edgar Bronfman Jr withdrew from the race for Paramount (NASDAQ: PARA), clearing the way for Skydance to take control of Shari Redstone’s media empire and ending one of the most chaotic media bidding wars in recent history.
(Source: ReutersReuters)
