Paramount Global and Skydance Media Reach Preliminary Merger Agreement: Potential Value of $2.4 Billion

New York City, New York, USA United States of America
Paramount Global and Skydance Media have reached a preliminary agreement to merge.
Skydance Media had previously proposed a merger deal with Paramount Global in April but talks fell apart in May without an agreement being reached.
Some analysts estimate a potential value of around $2.4 billion for the transaction.
The agreement still needs to approval from a special committee of Paramount Global's board of directors.
The deal is expected to be backed by investors including RedBird Capital Partners and David Ellison.
The merger would combine Paramount Global, which owns CBS and MTV among other assets, with Skydance Media, an up-and-coming movie studio that produced hits like 'Top Gun: Maverick'.
Paramount Global and Skydance Media Reach Preliminary Merger Agreement: Potential Value of $2.4 Billion

Paramount Global and Skydance Media have reached a preliminary agreement to merge, according to multiple reports. The deal comes after negotiations between the two parties collapsed last month. Paramount Global's shares surged on the news, with some analysts estimating a potential value of around $2.4 billion for the transaction.

The merger would combine Paramount Global, which owns CBS and MTV among other assets, with Skydance Media, an up-and-coming movie studio that produced hits like 'Top Gun: Maverick.' The deal is expected to be backed by investors including RedBird Capital Partners and David Ellison.

However, the agreement still needs to be approved by a special committee of Paramount Global's board of directors. Shari Redstone, who controls Paramount through her stake in National Amusements, has reportedly favored her position in previous negotiations and this could lead to potential lawsuits.

The longer negotiations have dragged out, the less value some assets may have for Paramount Global. For instance, the company is reportedly in talks to sell BET for around $1.6 billion-$1.7 billion.

Skydance Media had previously proposed a merger deal with Paramount Global in April but talks fell apart in May without an agreement being reached.

The media landscape and regulatory climate are expected to play a role in the outcome of the deal, as well as Paramount Plus streaming service's performance. The companies have not yet commented on the reports.


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Confidence

91%

Doubts
  • Shari Redstone's position in previous negotiations could lead to potential lawsuits.
  • The longer negotiations have dragged out, the less value some assets may have for Paramount Global.

Sources

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Skydance Media Reaches Preliminary Paramount Merger Agreement

Yahoo Finance Michelle F. Wednesday, 03 July 2024 16:17
  • Unique Points
    • Skydance Media has reached a preliminary agreement to buy Shari Redstone’s National Amusements Inc. and merge with Paramount Global.
    • The deal was revived after collapsing last month, with discussions picking up steam in the last week.
    • National Amusements, the family company that controls Paramount, will refer the deal to a special committee of Paramount directors for review.
    • Shares of Paramount surged as much as 13% to $12.13 on Wednesday following news of the agreement.
    • The new terms include a higher valuation for National Amusements and stronger language indemnifying the Redstones’ company against litigation that may result from the deal.
    • Paramount and Skydance declined to comment on the agreement, while National Amusements did not respond to inquiries.
  • Accuracy
    • ]The deal was revived after collapsing last month[
    • Shares of Paramount surged as much as 13% to $12.13 on Wednesday following news of the agreement
    • If approved, the deal will combine Paramount (parent company of CBS, MTV and Nickelodeon) and Skydance into a new Hollywood giant
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Why Paramount is back at the negotiating table with Skydance

Yahoo Finance Brad Smith Wednesday, 03 July 2024 16:18
  • Unique Points
    • Paramount Global's shares are rallying on revived merger talks with Skydance.
    • Skydance has reached a preliminary agreement to buy National Amusements, the controlling shareholder of Paramount.
    • If the deal goes through, Skydance would merge with Paramount Global.
    • Shari Redstone favors her position in the deal over other shareholders and this could lead to lawsuits.
    • The longer negotiations have dragged out, the less value assets may have for Paramount.
  • Accuracy
    • ]Paramount Global's shares are rallying on revived merger talks with Skydance.[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The author makes an appeal to authority fallacy by quoting Geetha Ranganathan's analysis and stating that it favors Shari Redstone. The author also uses inflammatory rhetoric by stating that the deal 'has the potential for attracting a lot of lawsuits' and 'created huge overhang on the stock'.
    • >With Skydance, what we’ve constantly seen is that they are proposing a deal which basically favors Shari Redstone, who is the controlling shareholder, favors her over everybody else. So it favors her over class A shareholders as well as class B shareholders.
    • , and that is something that has made Shari Redstone extremely wary.
    • The longer and longer this whole process kind of drags out, the less and the less value that the assets will have.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Paramount and Skydance Near Merger Deal

The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Benjamin Mullin, Tuesday, 02 July 2024 22:15
  • Unique Points
    • Paramount and Skydance have tentatively agreed to a merger.
    • Shari Redstone, who controls Paramount through her stake in National Amusements, is part of the new company’s backing investors along with RedBird and David Ellison.
  • Accuracy
    • ]Paramount and Skydance have tentatively agreed to a merger.[
    • Skydance Media has reached a preliminary agreement to buy Shari Redstone’s National Amusements Inc. and merge with Paramount Global.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

93%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Paramount Stock Pops on New Skydance Merger Offer

Variety Todd Spangler Wednesday, 03 July 2024 13:41
  • Unique Points
    • Paramount Global’s stock rose by 13% on July 3, following a renewed merger agreement between Skydance Media and Shari Redstone.
    • Shares had previously fallen to all-time lows under $10 after the previous offer was nixed on June 11.
    • The new agreement includes a ‘go-shop’ provision, allowing Paramount and NAI to solicit better offers within a 45-day window.
    • Redstone’s payout for NAI is now estimated at about $1.75 billion, down from roughly $2.1 billion under the previous offer.
    • Skydance and its financial backers will contribute $1.5 billion in cash to help Paramount pay off debt.
  • Accuracy
    • ] Paramount Global's stock rose by 13% on July 3, following a renewed merger agreement between Skydance Media and Shari Redstone.[
    • Shares of Paramount surged as much as 13% to $12.13 on Wednesday following news of the agreement.
  • Deception (80%)
    The article contains selective reporting as it only mentions the positive aspects of the new Skydance merger offer and fails to mention any potential negative consequences. It also uses emotional manipulation by stating that Paramount's stock price 'sprang to life' and 'settled down' implying excitement and disappointment respectively, even though the stock price was still up significantly from its previous lows.
    • Shares of Paramount Global sprang to life ahead of the July 4 holiday on a renewed agreement between Skydance Media and controlling shareholder Shari Redstone that would merge Skydance and Paramount.
    • The lift in Paramount’s stock price came after shares had risen 5.7% Tuesday following a report that the company was in talks to sell BET for $1.6 billion-$1.7 billion to a group led by BET CEO Scott Mills.
  • Fallacies (90%)
    The article contains an appeal to authority and inflammatory rhetoric. It also presents information in a dichotomous depiction by contrasting the stock's performance before and after Redstone's decision.
    • The bump comes on the news Tuesday that Redstone reached a preliminary deal with David Ellison’s Skydance production company …
    • Popular on Variety Crucially, what’s different in the new agreement: It includes a ‘go-shop’ provision…
    • The lift in Paramount’s stock price came after shares had risen 5.7% Tuesday following a report that the company was in talks to sell BET for $1.6 billion-$1.7 billion to a group led by BET CEO Scott Mills.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Paramount, Skydance Merger Is on Again in $2.4 Billion Deal

Yahoo Finance Lucas Manfredi Wednesday, 03 July 2024 16:25
  • Unique Points
    • Shari Redstone’s National Amusements closed a tentative $2.4 billion deal with David Ellison’s Skydance Media.
    • Skydance paying $1.75 billion in cash to acquire NAI before merging with Paramount.
    • The agreement includes a 45-day go-shop provision that gives other bidders the opportunity to make a better offer.
    • If finalized, Ellison and former Universal chairman Jeff Shell would likely be in the executive leadership of Paramount.
    • Unlike the previous bid, this deal will not go before shareholders for approval.
    • Other interested bidders for Paramount include Steven Paul, Edgar Bronfman Jr., Sony Pictures, Apollo Global Management, Byron Allen, and Warner Bros. Discovery CEO David Zaslav.
  • Accuracy
    • ,
    • Skydance has reached a preliminary agreement to buy Shari Redstone’s National Amusements and merge with Paramount Global.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication