Paramount’s merger: all the news on the drawn-out takeover drama
Illustration by Alex Castro / The VergeEven with Paramount’s merger agreement with Skydance, the takeover saga continues. Continue reading…
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As the film and TV industry contends with strings of layoffs, a changing business landscape, and a shift toward more ads in streaming, Paramount is looking to join forces with another company. For the past several months, Paramount has entertained deals from several potential suitors, including Warner Bros. Discovery, Apollo Global Management, and media mogul Byron Allen.
However, Paramount eventually signed onto a sweetened merger agreement with Skydance Media that would value the combined companies at $28 billion. The deal would also give Skydance control of Paramount parent company National Amusements.
But the saga doesn’t end there. A new $6 billion takeover bid from media investor Edgar Bronfman Jr. threatens to upend Paramount’s plans to merge with Skydance. You can keep up with all the latest about the Paramount merger below.
A new $6 billion bid to take over Paramount could undo plans to merge with Skydance.
Media investor Edgar Bronfman increased his offer to acquire Paramount from $4.3 billion to $6 billion, according to CNBC. Paramount has since extended its “go shop” period to 15 days, which allows it to review offers from other potential buyers. The offer could potentially upend the sweetened deal it reached with Skydance last month.
Hopefully, this new PARAMOUNT logo won’t stick around for long
Image: Paramount
If you didn’t know Paramount Global is set to merge with Skydance, then the logo included in their recent investor presentation would like to share an important update. Under its traditional mountain and stars, it shouts PARAMOUNT, using the all-caps styling and arched text of the Skydance logo instead of a more gently whispered Paramount.
It’s... not good. But, like the very bad Warner Bros. Discovery logo that appeared in 2021 when their merger was announced but disappeared by the time the deal closed a year later, it’s unlikely this is the final version of whatever redesign Paramount might cook up. If and when the deal gets done, the logo at that time probably won’t look like some poor shmoe had to jam out a quick synergistic symbol twenty minutes before an investor presentation.
Paramount agrees to sweetened Skydance merger deal
Brian van der Brug / Los Angeles Times via Getty Images
Paramount Global has agreed to merge with Skydance Media in a deal that will see the joint enterprise, temporarily dubbed “New Paramount,” valued at approximately $28 billion.
As part of the two-step agreement announced on Sunday, Paramount Chair Shari Redstone (the daughter of Sumner Redstone) will sell National Amusements — which holds her family’s controlling stake in Paramount — for $2.4 billion. Skydance will then merge with Paramount, investing $8 billion to purchase Paramount’s shares and pay off some of the company’s balance sheet. Bloomberg reports that Paramount has $14.6 billion of debt as of March, partially attributed to streaming losses and a decline in the company’s broadcast and cable TV business.
A Paramount and Skydance merger is THIS CLOSE.
A “special committee” of Paramount’s board approved a rumored merger with Skydance Media, which will be announced Monday, according to Bloomberg. The news could signal the end of the dramatic Paramount merger saga that’s been going on for months.
Time to pop the champagne? Perhaps. At least put it on ice. Maybe hold the glasses for a bit, though. We’ve been here before.
Paramount and Skydance might have a merger agreement?
Weeks after negotiations between Skydance and Paramount’s parent company, National Amusements, ended without a deal, the New York Times reports not only have they restarted, but “the two sides have reached a preliminary deal to create a new Hollywood giant.”
This follows a report from CNBC that Warner Bros. Discovery or Comcast could also be interested and Bloomberg saying Paramount might sell BET for $1.6 billion.
Updated: Added new reporting of a preliminary deal.
Paramount’s rumored merger with Skydance is off
Illustration by Alex Castro / The Verge
Following weeks of discussions, Paramount’s potential merger deal with Skydance has fallen apart, as reported earlier by The Wall Street Journal. In a statement on Tuesday, Paramount’s parent company, National Amusements, said the companies couldn’t “reach mutually acceptable terms” for its deal with Skydance Media.
One possible issue may have been Skydance’s decision not to include legal protection that would shield National Amusements head Shari Redstone from a lawsuit filed by shareholders, according to a report from The Hollywood Reporter. The WSJ reports that now, Redstone is “likely” to pursue a sale of National Amusements without trying to merge Paramount with another company.
Paramount and Skydance have reportedly settled on a merger agreement.
Following months of merger rumors, CNBC reports that Paramount and Skydance have finalized an agreement that it will announce in the “coming days.” Shari Redstone, the head of Paramount’s parent company National Amusements, still needs to sign off on the deal.
Sony is now in play to buy Paramount.
Paramount has formally begun negotiating with the company as the “period of exclusive talks with the Hollywood studio Skydance lapsed on Friday night,” according to The New York Times today.
Sony, which signaled its interest in buying Paramount last week, would reportedly hold controlling shares, while Apollo would have a minority stake, if the deal goes through.
Sony enters the running to buy Paramount.
Sources tell The New York Times that Sony and investment firm Apollo Global Management are in talks to submit a bid to acquire Paramount. At the same time, reports suggest Paramount is getting closer to making a deal with Skydance.
Paramount and Skydance are even closer to making a deal.
Yesterday, the NYT said there were discussions of entering exclusive talks, and now multiple outlets report the companies have entered a 30-day exclusive negotiating window. Bloomberg even says, “Shari Redstone, Paramount’s controlling shareholder, has reached a tentative agreement to sell her stake to Skydance.”
The hold up now is apparently the second step of Paramount and Skydance reaching a merger agreement. As for other hopefuls, Variety reports a $27 billion all-cash bid from the private equity firm Apollo was declined.
Paramount and Skydance get a little closer to making a deal.
Paramount still hasn’t settled on a partner, but the New York Times reports negotiations with Skydance over a possible merger have reached the step of “discussing entering into exclusive talks.”
Paramount might have another potential suitor.
Apollo Global Management, a private equity firm that owns the majority of Yahoo, is discussing a takeover or asset purchase with Paramount, according to a report from Axios.
Rumors about a potential Paramount merger or sale have been swirling for months. Skydance Media is also reportedly in the running to purchase Paramount’s parent company, while Warner Bros. Discovery’s rumored deal is on pause. Meanwhile, reports suggest Comcast is looking into offering a Peacock streaming bundle with Paramount Plus as well.
Warner Bros. Discovery and Paramount have reportedly hit pause on merger talks.
Warner Bros. Discovery has stopped pursuing an acquisition of Paramount, sources tell CNBC. However, other potential buyers are reportedly still exploring a deal to acquire Paramount, including the production company Skydance Media and media mogul Byron Allen.
Although Comcast isn’t interested in buying Paramount Global, CNBC reports that the company is still looking into a partnership with the brand, which could involve bundling or merging streaming services.
A merging of Warner Bros. Discovery and Paramount would be very bad
Illustration by Alex Castro / The Verge
This week, Axios broke the news that Warner Bros. Discovery and Paramount were looking into some sort of merger. It would make sense: Warner Bros. Discovery is trying to become a content behemoth, and Paramount would give the company even more content plus a grouping of popular (as they can be in this age) broadcast and cable channels. It would further secure Warner Bros. Discovery’s control over tentpole IP and allow it to serve as an even more potent rival to Disney and Netflix.
It would also be very bad for all of us who just want to watch some shows after work or school. In 2023, we finally saw the future envisioned by the companies behind the streaming services we all use. It was not a world where shows and movies are readily available, fan-favorites get the attention they deserve, and aggressive competition keeps prices low — instead, we got perpetually rising prices, disappearing content, and abrupt and poorly messaged cancellations.
