After weeks of negotiations, the proposed merger between Skydance and Paramount Global seems to be in jeopardy. Paramount’s special board committee has reportedly cooled on the offer, which would have involved David Ellison’s studio, along with financial partners RedBird Capital and KKR, acquiring controlling shareholder Shari Redstone’s stake in the company and merging Skydance into Paramount.
Skydance had a 30-day exclusive negotiating window and had recently proposed a revised offer to sweeten the deal for Paramount common shareholders. However, the special board committee is not likely to extend the negotiating window, which ends today.
In the midst of these developments, Paramount has another offer on the table from Apollo and Sony Pictures, a $26 billion all-cash deal. Despite this alternative, Redstone is said to be unenthusiastic about the offer.
The end of the Skydance talks comes after a tumultuous week for Paramount, which saw the departure of CEO Bob Bakish and the appointment of a trio of executives to lead the company. With the uncertainty surrounding the merger and the regulatory concerns of the Apollo-Sony deal, Paramount is facing a pivotal moment under its new leadership.
The executives have expressed their commitment to leading the company long-term and are finalizing a new strategic plan to guide Paramount into the future. As Paramount shares dip about 5% for the day, the company and stakeholders remain tight-lipped about the ongoing negotiations and future plans.