Paramount Global (NASDAQ: PARA) stock jumped in pre-market trading Monday after a mass media company agreed to a Skydance merger in a $28 billion deal.
Paramount Global and Skydance Media have entered into a definitive agreement to merge, creating a new entity named “New Paramount” in a landmark $28 billion deal. This merger, announced on Sunday, will establish a “next-generation media and technology leader,” according to a press release from Skydance Media.
Key Merger Details
The transaction involves a two-step process wherein Skydance and its partners will first acquire National Amusements, the controlling stakeholder of Paramount, for $2.4 billion in cash. Following this acquisition, Skydance will merge with Paramount, offering shareholders $4.5 billion in cash or stock and injecting an additional $1.5 billion into Paramount’s balance sheet.
The transaction, once finalized, will mark the culmination of a complex merger process, ending the Redstone family’s four-decade control of the media empire.
The merger will combine Skydance’s financial strength and technological prowess with Paramount’s iconic intellectual property, extensive film and television library, and robust linear and streaming platforms.
David Ellison, founder of Skydance Media, will assume the role of Chairman and CEO of the newly formed entity, while Jeff Shell will serve as President. This leadership team aims to enhance profitability, stability, and creative independence, fostering increased investment across growth areas.
Ellison expressed his gratitude towards Shari Redstone and her family for entrusting them with the leadership of Paramount. He emphasized the commitment to revitalizing the business with contemporary technology, new leadership, and a creative ethos to enrich future generations.
Shari Redstone, Chair of Paramount Global and CEO of National Amusements, Inc., also expressed her confidence in the deal. She stated that this merger would fortify the future of Paramount and maintain a focus on content as a priority.
According to Bloomberg, the merger has received approval from a special committee of Paramount’s board. This approval marked a significant milestone towards finalizing the transaction, which involves acquiring National Amusements, the controlling shareholder of Paramount.
Paramount Global (NASDAQ: PARA) Stock Reaction
As of 08:18 a.m. (Eastern Time) Monday, PARA stock traded at $12.13, marking a 2.71% increase compared to the previous trading session.
