News Release
Skydance Media and Paramount Global Sign Definitive Agreement to Advance Paramount as a World-Class Media and Technology Enterprise
LOS ANGELES and NEW YORK, July 07, 2024 (GLOBE NEWSWIRE) – Skydance Media (“Skydance”) and Paramount Global (NASDAQ: PARA, PARAA) (“Paramount”) today announced that they have entered into a definitive agreement to form “New Paramount” – a next-generation media and technology leader, through a two-step transaction including the acquisition of National Amusements, Inc. (“NAI”), which holds the controlling share stake in Paramount, and subsequently a merger of Skydance and Paramount Global.
Ellison Family and RedBird Capital Partners to Invest Over $8 Billion i n New Paramount and to Acquire National Amusements, Inc.
Paramount Class A Stockholders to Receive $23 Per Share in Cash/Stock Election, Class B Stockholders to Receive $15 Per Share in Cash/Stock Election; Cash Consideration Available to Public Shareholders Totals $4.5 Billion
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Next generation leadership team to take helm, led by David Ellison as Chairman and Chief Executive Officer, and Jeff Shell as President; Skydance plans to enhance and reinvigorate marquee Paramount and CBS brands
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New Paramount will be a creative-driven destination for storytellers dedicated to delivering top-quality content
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Paramount’s premier content platform to be enhanced and powered by best-in-class technology and modernized infrastructure offering scalability and ingenuity focused on delivering content through wholly-owned DTC platforms of Paramount+ and Pluto while enhancing CBS and Paramount’s linear networks
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Ellison team plans to reposition Paramount to improve profitability, foster stability and independence for creators, and enable more investment in faster growing digital platforms
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Skydance will merge with Paramount in an all-stock transaction, valuing Skydance at $4.75 billion; Skydance equity holders will receive 317 million Class B Shares valued at $15 per share
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Skydance Investor Group, comprised of the Ellison Family and RedBird Capital Partners, to invest $2.4 billion to acquire National Amusements for cash and $4.5 billion for the stock/cash merger consideration to be paid for publicly traded Class A shares and Class B shares, as well as $1.5 billion of primary capital to be added to Paramount’s balance sheet
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Post transaction close, Skydance Investor Group will own 100% of New Paramount Class A Shares and 69% of outstanding Class B shares, or approximately 70% of the pro forma shares outstanding
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The per share cash election amount to be offered to Paramount’s stockholders represents a 48% premium to the price of the Class B stock as of July 1, 2024, and a 28% premium to the Class A stock on the same date. By continuing to own shares of the newly combined company, Paramount Class B stockholders will have the opportunity to participate in New Paramount’s long-term value creation potential
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Skydance and Paramount to host investor call at 8:30 a.m. Eastern on July 8, 2024
From CBS News