Paramount and Skydance are getting closer to finalizing an acquisition deal, as reported by The New York Times. reported Tuesday.
Following This information comes from reports in January by Bloomberg. According to sources, Skydance Media CEO David Ellison made an initial offer to acquire National Amusements from the Redstone family as a way to gain control of Paramount Global. Last month, Ellison met with Paramount’s board of directors, as confirmed by the Times through four individuals familiar with the meeting.
The two companies are now discussing the possibility of entering into exclusive talks as they begin to shape the deal. TheWrap has reached out to Skydance and Paramount for comment.
Skydance has been a significant partner for Paramount ever since they entered a co-financing, production, and theatrical distribution deal in 2009. They have co-produced various franchise films for the studio like “Star Trek,” “Mission: Impossible,” and “Transformers.” Additionally, Skydance produced the 2022 film “Top Gun: Maverick,” which became Paramount’s highest grossing box office hit since “Titanic.”
Skydance is not the only potential bidder looking to acquire Paramount. Just last month, investment firm Apollo Global Management made an $11 billion offer to acquire Paramount’s movie studio. However, it seems that the company is seeking a bidder who will acquire Paramount’s entire portfolio rather than just specific divisions.
After struggling at the box office for years, Paramount’s film division has experienced a recent turnaround under studio CEO Brian Robbins and co-presidents Daria Cercek and Michael Ireland. The studio posted a domestic total of $1.3 billion in 2022, marking its first $1 billion-plus year since 2014.
Paramount’s streaming service, Paramount+, is currently striving for profitability with 67.5 million subscribers reported last quarter. The service incurred a $490 million loss in Q4 of 2023 but is anticipated by the company to start turning a profit in 2025.
Upon news of the talks with Skydance, Paramount’s stock experienced a slight increase to just under $12/share during after-hours trading. The stock price has fallen 18% year-to-date, reflecting a broader downturn in 2024 for media companies.
More details will be revealed in the future.
