https://www.cnbc.com/2024/06/03/paramou ... pdate.html
>> A Paramount special committee and the buying consortium — David Ellison’s Skydance, backed by private equity firms RedBird Capital and KKR — agreed to the terms. The deal is awaiting signoff from Paramount’s controlling shareholder, Shari Redstone, who owns National Amusements, which owns 77% of class A Paramount shares, Faber said Monday.
The agreement terms come after weeks of discussion and a recent competing offer from Apollo Global Management and Sony Pictures.“We received the financial terms of the proposed Paramount/Skydance transaction over the weekend and we are reviewing them,” said a National Amusements spokesperson.
The deal currently calls for Redstone to receive $2 billion for National Amusements, Faber reported Monday. Skydance would 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.
Following the deal’s close, Skydance and RedBird would own two-thirds of Paramount, and the class B shareholders would own the remaining third of the company, Faber reported. The negotiated terms were reported earlier by The Wall Street Journal.
~
In early May, Apollo and Sony formally expressed interest in acquiring Paramount for about $26 billion, CNBC previously reported. However, Redstone has favored a deal that would keep Paramount together, and Apollo and Sony planned to break up the company, CNBC previously reported.
<<
Yes it always makes sense to sell with a valuation of $8b vs $26b.... What a A-hoe S. Redstone is.
We'll see if Shari Redstone doesn't screw up another deal. RBC is backing the deal but what level of control they have is TBD.