Merger talks between Paramount Global and Skydance Media have officially ended, according to Paramount Global president Shari Redstone. Following six months of negotiations, the two companies were unable to come to an agreement. Despite interest from Sony, Skydance was the sole company approved by Paramount’s controller after the company has been evaluating offers for several months.
Paramount abandons plans to merge with Skydance.
Shari Redstone, the leader of NAI, which owns 77% of Paramount’s voting shares, revealed the conclusion of discussions in a gratitude statement directed at Skydance. The cause of the discord between the companies remained unknown, as Skydance did not address the issue.
NAI expressed gratitude to Skydance for their recent efforts and expressed optimism for ongoing production collaboration between the two companies.
Sony has hope.
Sony’s $26 billion cash offer and the Apollo fund are being considered by Paramount following the end of negotiations with Skydance. Paramount’s shareholders have raised concerns about the deal with Skydance and are encouraging the company to explore other options.
Sony and Apollo’s offer of $26 billion in cash, excluding shares and physical assets, is more appealing to Paramount’s shareholders as the media conglomerate appears to prioritize a deal that benefits its shareholders.
Why is Paramount being sold?
Paramount is struggling with heightened competition and a sluggish advertising market, leading to reduced profits in its television sector. The company was heavily impacted by the actors’ and screenwriters’ strike last year and has yet to fully bounce back. Additionally, its streaming platform, Paramount+, is unable to rival competitors such as Netflix and Disney.
Paramount’s performance declined significantly over the past year, causing its market worth to drop by over $14 billion to approximately $9 billion, with debts exceeding $14 billion.
The cancellation of the merger with Skydance has opened up new possibilities for Paramount’s future with potential agreements with Sony and Apollo.
