The on-again, off-again, negotiations over a merger between Skydance Media and Paramount Global have collapsed, with the Wall Street Journal publishing a statement from National Amusements confirming that the talks have ended.
National Amusements, which is owned by the Redstone family and run by Shari Redstone, owns 77% of the voting stock of Paramount.
In a statement National Amusements said “that they have not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.”
Talks between David Ellison’s Skydance Media and the Shari Redstone have been going on for several months. Chances of an agreement rose in April, when Skydance entered into an exclusive window to negotiate with Paramount, and then fell when they were unable to agree on terms in May. Last week, however, the two parties seemed close to a deal, with CNBC and the Wall Street Journal both reporting that a deal was expected this week.
The Wall Street Journal is now reporting that Shari Redstone “will now likely pursue a sale of just National Amusements, without trying to merge Paramount into another company, people familiar with the matter said. NAI has received interest from two potential parties—an investor consortium led by Hollywood producer Steven Paul, as well as from media executive Edgar Bronfman Jr., backed by private-equity firm Bain Capital, the Journal earlier reported.”
The New York Times reported that one hitch in completing the deal was whether Skydance would indemnify Redstone from shareholder lawsuits. Another stumbling block was the growing lack of trust between the two parties.
Other potential bidders for Paramount include Sony, Byron Allen, Warner Bros. Discovery, and others.
