These merger negotiations occur in a delicate context for the entertainment industry in Hollywood.
Paramount Global and Skydance Media have reached a tentative merger agreement, three weeks after suspending negotiations, the American newspaper The Wall Street Journal reported.
The deal will still need to be approved by a special committee of Paramount Global’s board of directors, and Skydance would reportedly pay $1.75 billion for National Amusements Inc., a company that Shari Redstonewhich controls nearly 80% of the voting shares in Paramount.
On June 11, National Amusements Inc. ended negotiations with Skydance, saying they had been unable to reach mutually acceptable terms regarding the potential transaction.
According to people close to the parties, The preliminary agreement includes a 45-day period for other bidders to match or improve the offer. from Skydance by Paramount Global.
Are merger negotiations They are taking place in a delicate context for the entertainment industry, a sector that has been hit hard by the strikes that hit Hollywood in 2023 and is seeing audience interest in traditional television channels decline in favor of new formats such as streaming video.
Paramount+ could join CNBC
This Tuesday, CNBC reported that Paramount Global was exploring new merger possibilities from its streaming platform, Paramount+, with another platform due to huge revenue losses. Warner Bros. Discovery was one of the interested companies, which would point to a possible absorption of the catalogue within Max.
Paramount Global shares have suffered a hard blow so far this year, with a fall of 28%. However, they rose nearly 6% in regular trading on Tuesday.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
