In a dramatic turn of events, Paramount’s exclusive negotiating window with Skydance came to a close on March 31st and was not renewed. However, David Ellison’s company, Skydance, is still in the running for a potential deal with Paramount. A special committee of Paramount’s board has been set up to explore offers and can receive and acknowledge another offer during an exclusive window but cannot engage with the other party. While Skydance would need to cool its heels while Paramount examines other offers, a team from Sony Pictures Entertainment and private equity giant Apollo have lobbed a preliminary offer of about $26 billion. The special committee of Paramount’s board is expected to evaluate this offer as well as the revised bid from Skydance, which offered to provide the combined company with a $3 billion cash infusion that it can use to pay down debt and buy back stock. As Hollywood fears a Paramount-Sony hookup that would reduce the number of big players for shopping projects and doing business, all parties involved are under pressure to make the best decision for their stakeholders. The outcome of these negotiations will have significant implications for the future of Paramount and its place in the entertainment industry.
