NEW YORK—The lengthy negotiations for Skydance to merge with Paramount are moving closer to completion, with several outlets reporting that Paramount and Skydance, which is backed by private equity firm RedBird Capital, have agreed to terms of a deal.
CNBC is reporting that the deal is valued at $8 billion, up from $5 billion earlier on the table, and that it currently calls for the controlling shareholder Shari Redstone to receive $2 billion for National Amusements. Skydance would also "buy out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion, leaving the holders with equity in the new company. Skydance and RedBird would also contribute $1.5 billion in cash to Paramount’s balance sheet to help reduce debt,” CNBC reported.
When the deal closes, David Ellison’s Skydance and RedBird would own two-thirds of Paramount, and the class B shareholders would own the remaining third of the company, the Wall Street Journal and CNBC reported.
The potential agreement comes after months of discussions about selling Paramount. Skydance had an exclusive window to complete the deal earlier this year and when the parties were unable to come to terms, Sony and Apollo Global Management submitted a proposal to acquire the company.
