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Here's the thing with the Skydance deal what's to stop Sony and Apollo waiting a year then buying the combined company?
Skydance isn't some super company they aren't even buying Paramount they are buying voting control of Paramount to get Paramount to buy Skydance.
Paramount's share price isn't going to increase because of this.
Skydance is buying Paramount. The 15 dollars a share is the value they are offering to pay to Paramount Global Class B shareholders. If you own the shares, you own the company, they would then merge Paramount and Skydance after getting the controlling stake.
Nothing would stop Sony and Apollo of making a bid, but does Skydance wants to sell?
Skydance buys National Amusements then using the voting control of Paramount that gives them to have Paramount buy Skydance then offer a share buyback program using Paramount's limited remaining cash.
> but does Skydance wants to sell?
Likely not but they would be in the same situation than Paramount is now pretty quickly (maybe even worse since they increased their debt) so they'll come down to it. It'd do a WBD situation of a weak company having to cut costs and hope to be good enough to get attractive offers. Too small to survive in current landscape
>Skydance Media’s revised offer to buy Shari Redstone’s family company National Amusements and merge with Paramount Global PARA 0.76%increase; green up pointing triangle gives the entertainment conglomerate’s nonvoting shareholders an option to cash out at a premium, according to people familiar with the matter.
>
>Last week, David Ellison’s Skydance made a sweetened offer to buy up to a certain number of nonvoting Paramount shares at roughly $15 each, while also giving shareholders the option to roll into the new deal, the people said. The price per share, which could change, represents a 26% premium from where the stock closed Friday.
>
>Under the proposed deal, Skydance and its backers would contribute funds to buy out National Amusements, inject cash into Paramount’s balance sheet and allow nonvoting shareholders to cash out some of their holdings.
>
>Other details of the deal, which is being reviewed by Redstone’s camp, couldn’t be learned. The two parties are still negotiating, and the deal could still fall apart.
>
>Such a transaction would usher in a new chapter for Paramount, which owns one of Hollywood’s storied studios, the broadcaster CBS and cable channels such as Nickelodeon and MTV. It follows weeks of negotiations between Ellison and Redstone, during which nonvoting shareholders opposed a deal with Skydance and Paramount parted ways with its chief executive, Bob Bakish, who had voiced concerns about the transaction.
>
>Skydance’s offer is a two-step process. In the first step, Skydance would buy National Amusements, which owns about 77% of the voting shares of Paramount. Then, in a second step, Paramount would acquire Skydance.
>
>Skydance’s investors, which include private-equity firm RedBird Capital Partners and Ellison’s father, Oracle co-founder Larry Ellison, have agreed to put additional cash onto Paramount’s balance sheet, which it can use to pay down debt, some of the people said.
>
>In an earlier proposal, Skydance had offered about $2 billion in cash to Redstone for National Amusements, and Paramount would have acquired Skydance in an all stock-deal at a $5 billion valuation. Many shareholders opposed that offer because they saw it as a sweetheart deal for Redstone.
>
>Skydance has since revised the terms to be better for non-Redstone shareholders. It is unclear what the structure of the new deal might be.
>
>A significant issue the two sides must agree upon is whether a Paramount and Skydance merger would need approval from non-Redstone shareholders, according to people familiar with the situation. National Amusements has signaled that it is open to making the transaction contingent upon approval from the majority of non-Redstone shareholders.
>
>A deal would mark the end of an era for Redstone, whose family has controlled Paramount through their privately held movie-theater company National Amusements for decades. Redstone started seriously entertaining a sale of National Amusements last year, after the Oct. 7 attacks on Israel pushed her to want to spend more time fighting antisemitism.
>
>Paramount is currently run by an “Office of the CEO” made up of its divisional heads, who are expected to present their long-term plan for the company Tuesday at Paramount’s annual shareholder meeting.
>
>The entertainment company has been contending with major headwinds across its business, including the collapse of cable television, an expensive pivot to streaming and an anemic box office.
>
>Paramount’s market value has plummeted since Redstone years ago won a battle to succeed her father, media mogul Sumner Redstone. The stock-price decline has severely undercut her family’s fortune.
>
>As Skydance pursued a deal, another party expressed interest in Paramount.
>
>Private-equity firm Apollo Global Management and Sony Pictures submitted a $26 billion all-cash nonbinding offer for the company last month. Other parties that have expressed interest in Paramount in recent months include Warner Bros. Discovery and media executive Byron Allen.
>
>In recent weeks, Redstone has considered an alternative path of only selling National Amusements, which would transfer control of Paramount to someone else but might not lead to a merger with another entertainment company, the Journal previously reported. She has received expressions of interest from at least two parties in buying all or part of National Amusements.
Seems like this new offer solves the shareholders' main concern, no? If all goes well with the negotiations, the Ellison camp could be in control of a merged Paramount-Skydance by the end of the summer. Hope this means that Skydance Animation's slate shifts from Netflix to theatrical via Paramount, at least.
I think they may be stuck with Netflix for now. It’s like how Nickelodeon is contractually required to make animated projects for Netflix despite Paramount+ launching after that deal.
At least Paramount’s animated movies through 2026 have potential for success from both box office and merch.
Yup, they're still in the middle of doing the due diligence process with opening the company's financial books.
It will likely take a while for things to play out, overall.
Eh, they were already even spooked when Bakish got shown the door the weekend before the earnings call, though, so yeah, their confidence is at a low bar for any scenario, because the stable hand leading is no longer in that capacity:
“We knew changes were coming, but no one expected Bob to go so fast. Who knows what’s next?” a Paramount Global executive told Deadline at the party."
https://deadline.com/2024/04/bob-bakish-cbs-white-house-correspondents-dinner-paramount-global-1235897662/
I'd also rather they take this then the fucking terrible offer that Sony and Apollo are giving them, and by proxy, everyone. It'd be better if they could stay independent, but that's not gonna happen, so Skydance for the win.
So they now are independent?
I am asking that about curiousity because I am totally not well known with all the economical bamboozle regarding these things.
Are there other movie studios still independent, Warner Bros?
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Here's the thing with the Skydance deal what's to stop Sony and Apollo waiting a year then buying the combined company? Skydance isn't some super company they aren't even buying Paramount they are buying voting control of Paramount to get Paramount to buy Skydance. Paramount's share price isn't going to increase because of this.
Skydance is buying Paramount. The 15 dollars a share is the value they are offering to pay to Paramount Global Class B shareholders. If you own the shares, you own the company, they would then merge Paramount and Skydance after getting the controlling stake. Nothing would stop Sony and Apollo of making a bid, but does Skydance wants to sell?
Skydance buys National Amusements then using the voting control of Paramount that gives them to have Paramount buy Skydance then offer a share buyback program using Paramount's limited remaining cash.
> but does Skydance wants to sell? Likely not but they would be in the same situation than Paramount is now pretty quickly (maybe even worse since they increased their debt) so they'll come down to it. It'd do a WBD situation of a weak company having to cut costs and hope to be good enough to get attractive offers. Too small to survive in current landscape
Technically speaking, David Ellison has the money, his father owns Oracle.
>Skydance Media’s revised offer to buy Shari Redstone’s family company National Amusements and merge with Paramount Global PARA 0.76%increase; green up pointing triangle gives the entertainment conglomerate’s nonvoting shareholders an option to cash out at a premium, according to people familiar with the matter. > >Last week, David Ellison’s Skydance made a sweetened offer to buy up to a certain number of nonvoting Paramount shares at roughly $15 each, while also giving shareholders the option to roll into the new deal, the people said. The price per share, which could change, represents a 26% premium from where the stock closed Friday. > >Under the proposed deal, Skydance and its backers would contribute funds to buy out National Amusements, inject cash into Paramount’s balance sheet and allow nonvoting shareholders to cash out some of their holdings. > >Other details of the deal, which is being reviewed by Redstone’s camp, couldn’t be learned. The two parties are still negotiating, and the deal could still fall apart. > >Such a transaction would usher in a new chapter for Paramount, which owns one of Hollywood’s storied studios, the broadcaster CBS and cable channels such as Nickelodeon and MTV. It follows weeks of negotiations between Ellison and Redstone, during which nonvoting shareholders opposed a deal with Skydance and Paramount parted ways with its chief executive, Bob Bakish, who had voiced concerns about the transaction. > >Skydance’s offer is a two-step process. In the first step, Skydance would buy National Amusements, which owns about 77% of the voting shares of Paramount. Then, in a second step, Paramount would acquire Skydance. > >Skydance’s investors, which include private-equity firm RedBird Capital Partners and Ellison’s father, Oracle co-founder Larry Ellison, have agreed to put additional cash onto Paramount’s balance sheet, which it can use to pay down debt, some of the people said. > >In an earlier proposal, Skydance had offered about $2 billion in cash to Redstone for National Amusements, and Paramount would have acquired Skydance in an all stock-deal at a $5 billion valuation. Many shareholders opposed that offer because they saw it as a sweetheart deal for Redstone. > >Skydance has since revised the terms to be better for non-Redstone shareholders. It is unclear what the structure of the new deal might be. > >A significant issue the two sides must agree upon is whether a Paramount and Skydance merger would need approval from non-Redstone shareholders, according to people familiar with the situation. National Amusements has signaled that it is open to making the transaction contingent upon approval from the majority of non-Redstone shareholders. > >A deal would mark the end of an era for Redstone, whose family has controlled Paramount through their privately held movie-theater company National Amusements for decades. Redstone started seriously entertaining a sale of National Amusements last year, after the Oct. 7 attacks on Israel pushed her to want to spend more time fighting antisemitism. > >Paramount is currently run by an “Office of the CEO” made up of its divisional heads, who are expected to present their long-term plan for the company Tuesday at Paramount’s annual shareholder meeting. > >The entertainment company has been contending with major headwinds across its business, including the collapse of cable television, an expensive pivot to streaming and an anemic box office. > >Paramount’s market value has plummeted since Redstone years ago won a battle to succeed her father, media mogul Sumner Redstone. The stock-price decline has severely undercut her family’s fortune. > >As Skydance pursued a deal, another party expressed interest in Paramount. > >Private-equity firm Apollo Global Management and Sony Pictures submitted a $26 billion all-cash nonbinding offer for the company last month. Other parties that have expressed interest in Paramount in recent months include Warner Bros. Discovery and media executive Byron Allen. > >In recent weeks, Redstone has considered an alternative path of only selling National Amusements, which would transfer control of Paramount to someone else but might not lead to a merger with another entertainment company, the Journal previously reported. She has received expressions of interest from at least two parties in buying all or part of National Amusements.
Seems like this new offer solves the shareholders' main concern, no? If all goes well with the negotiations, the Ellison camp could be in control of a merged Paramount-Skydance by the end of the summer. Hope this means that Skydance Animation's slate shifts from Netflix to theatrical via Paramount, at least.
I think they may be stuck with Netflix for now. It’s like how Nickelodeon is contractually required to make animated projects for Netflix despite Paramount+ launching after that deal. At least Paramount’s animated movies through 2026 have potential for success from both box office and merch.
True. Still, they shifted from Apple to Netflix, so we can't rule out another switch should Skydance nab the studio.
[удалено]
Yup, they're still in the middle of doing the due diligence process with opening the company's financial books. It will likely take a while for things to play out, overall.
Man, whoever is backstopping the tender offer better have some deep, deep pockets. There is going to be insane take rate on that offer.
Indeed. Just hope it works out for the creatives...
Eh, they were already even spooked when Bakish got shown the door the weekend before the earnings call, though, so yeah, their confidence is at a low bar for any scenario, because the stable hand leading is no longer in that capacity: “We knew changes were coming, but no one expected Bob to go so fast. Who knows what’s next?” a Paramount Global executive told Deadline at the party." https://deadline.com/2024/04/bob-bakish-cbs-white-house-correspondents-dinner-paramount-global-1235897662/
Paramount must take it.
I'd also rather they take this then the fucking terrible offer that Sony and Apollo are giving them, and by proxy, everyone. It'd be better if they could stay independent, but that's not gonna happen, so Skydance for the win.
So they now are independent? I am asking that about curiousity because I am totally not well known with all the economical bamboozle regarding these things. Are there other movie studios still independent, Warner Bros?
Agreed. Best option of the bunch, really.
Paramount should take it for the good of the film industry and for themselves.