According to the sources, Shari Redstone, the non-executive chairman of Paramount Global and President of National Amusements, has terminated discussions regarding the latest offer for Paramount Global from the consortium led by Skydance and RedBird Capital. This decision places Paramount Global’s future into a new period of uncertainty.
A spokesperson for National Amusements, the Redstone-run entity that controls Paramount, announced that the company “has not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.” The statement added, “NAI supports the recently announced strategic plan being executed by Paramount’s Office of the CEO, as well as their ongoing work and that of the Company’s Board of Directors, to continue to explore opportunities to drive value creation for all Paramount shareholders.”
The special committee of Paramount Global’s board of directors, which has been assessing sale and merger options for the company since last fall, has reiterated that NAI terminated the talks. Notably, originally scheduled to vote on the deal terms negotiated after months of negotiations, the committee confirmed in a statement that the vote did not take place.
The statement said, “The Special Committee met on Tuesday to discuss the progress of discussions regarding a potential transaction with Skydance Media. At that time, a representative of National Amusements, Inc. informed the Special Committee that it did not have an agreement on a deal with Skydance Media and didn’t anticipate a path forward on this transaction. The Special Committee did not vote on any potential transaction.”
Redstone is currently exploring selling NAI independently to another potential buyer, according to a report in The Wall Street Journal on Tuesday. However, the Skydance team, which submitted its best and final offer in April, has maintained a belief that competing suitors will eventually withdraw from the negotiations.
Skydance had previously obtained approval from Paramount’s independent board committee in a revised agreement. For Paramount’s non-voting shareholders, the amended deal included provisions to potentially sell their shares at $15 each. Additionally, for approximately $2 billion, Skydance had proposed acquiring Redstone’s National Amusements.
Paramount’s future has been subject to significant speculation in recent months with attention drawn to its streaming business experiencing ongoing financial losses, its credit rating under pressure, and its linear TV business facing sustained decline.