Skydance Media and Paramount Global Move Closer to Sale Agreement But Deal is Far From Done

Michael Buckner/Variety

David Ellison’s Skydance Media is moving closer to its goal of acquiring Paramount Global after a key vote was taken by Paramount board members. But a formal takeover deal between Skydance and Paramount is still far from in the bag.

Bloomberg News reported Sunday that the special committee of Paramount Global’s board of directors tasked with reviewing M&A options has agreed to revised terms for a merger with Skydance. The pact will now be reviewed by the full board of the parent company of Paramount Pictures, CBS, Nickelodeon, Paramount+, Showtime, MTV and more. If the deal passes muster with the board, most specifically controlling shareholder Shari Redstone, Skydance and Paramount are expected to announce the agreement Monday as early as before the markets open at 9:30 a.m. ET.

As part of the deal, Paramount Global will have the right to shop around for matching or superior offers for a 45-day period before completing the deal with Skydance. Although Paramount has been seen as on the block for years, that ticking clock is likely to bring out opportunistic contenders. Already, media adjacent-moguls including Barry Diller and Edgar Bronfman Jr. have indicated interest in a deal to buy out National Amusements Inc., Redstone’s holding company that owners her controlling interest in Paramount Global.

Paramount and Skydance were close to tying the knot this time last month when National Amusements abruptly broke off talks, citing concerns the company would not be able to close the deal. Skydance’s effort is backed by Gerry Cardinale’s RedBird Capital, among other equity players.

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Representatives for Paramount Global, the board’s special committee and Redstone’s National Amusements Inc. holding company did not respond to requests for comment Sunday afternoon. A representative for Skydance Media declined to comment.