Paramount Global (NASDAQ: PARA) stock jumped in pre-market trading Wednesday following reports that billionaire Barry Diller is exploring a takeover bid for the company.
IAC (NASDAQ: IAC), a Barry Diller-led digital media conglomerate, has initiated discussions with National Amusements, the controlling shareholder of Paramount Global, according to a report by The New York Times. Sources familiar with the matter revealed that both parties have entered into nondisclosure agreements (NDAs), a critical step that allows the exchange of confidential information essential for negotiations.
This development marks a pivotal moment in a highly complex and dramatic attempt to sell Paramount, especially following the recent collapse of a near-deal with Skydance.
IAC and National Amusements executed the nondisclosure agreements after the Paramount-Skydance deal fell apart in June. While the progress of these talks remains uncertain, other potential acquirers have also emerged, including media and finance executive Edgar Bronfman Jr. and Hollywood figure Steven Paul, known for the “Baby Geniuses” franchise.
For Barry Diller, aged 82, acquiring Paramount would mark a significant milestone, echoing his earlier attempt to acquire Paramount Pictures in the early 1990s. At that time, the aggressive media tycoon Sumner Redstone outbid Diller. Currently, Shari Redstone, Sumner’s daughter, controls Paramount.
Acquiring National Amusements would provide IAC with control over Paramount and its valuable studio library without requiring a full acquisition of the company. However, this move would also involve taking on substantial liabilities, including approximately $14 billion in debt and challenges in its cable business operations.
Paramount Global (NASDAQ: PARA) Stock Reaction
As of 07:55 a.m. (Eastern Time) Wednesday, PARA stock traded at $12.18, marking a 13.62% increase compared to the previous trading session.
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