After weeks of negotiations, the proposed merger between Skydance and Paramount Global seems to be in jeopardy. Paramount’s special board committee has reportedly cooled on the offer, which would have involved acquiring controlling shareholder Shari Redstone’s stake in the company and merging Skydance into Paramount with new leadership.
Skydance had been in an exclusive negotiating window and proposed a revised offer to sweeten the deal for Paramount common shareholders. However, the window is set to close today, with no indication of an extension.
Another offer on the table is a $26 billion all-cash deal from Apollo and Sony Pictures, but Redstone is said to be unenthusiastic about it. The end of the Skydance talks comes after Paramount parted ways with CEO Bob Bakish and announced a new leadership team.
With the uncertainty surrounding the merger deals, Paramount will need to find its own path forward under the new leadership. The executives have expressed their commitment to leading the company long-term and are finalizing a new strategic plan to guide Paramount into the future.
Paramount shares have dropped about 5 percent in response to the news. Spokespersons for Paramount, Skydance, Shari Redstone, and the board committee have all declined to comment on the situation. The future of Paramount Global remains uncertain as the company navigates through these challenging negotiations.
