Paramount and Skydance are moving closer to a potential merger where David Ellison’s media company would buy out Paramount’s controlling shareholder Shari Redstone.
According to sources familiar with the discussions who spoke to TheWrap, Skydance has agreed as part of a potential merger agreement to inject between $4.5 and $5 billion of new funds into Paramount, with $2 billion of that amount being used to acquire Redstone’s shares and settle the company’s debts. Ellison would take over as CEO of Paramount, replacing current CEO Bob Bakish, while former NBCUniversal CEO Jeff Shell would become president.
One prominent media executive who is not said to be under consideration for a position at the combined company is former NBC and CNN chief Jeff Zucker, who was previously rumored to be in the running for a role that would have marked his return to media since stepping down from CNN in 2022.
Skydance’s chief creative officer Dana Goldberg and president Jesse Sisgold are also anticipated to play significant roles in the merged company, which would potentially centralize Paramount’s TV networks, including CBS, BET, Nickelodeon, and other cable channels, under a unified team, according to sources.
These terms have been negotiated under a period of exclusivity that is currently set to end in May.
Skydance’s bid for Paramount has faced strong opposition from shareholders, who believe that the company’s acquisition proposal would provide Redstone with a large portion of the profits by buying her shares while devaluing the rest of the company’s shares.
A competing offer was presented to Paramount by private equity firm Apollo Global Management, which Redstone declined in favor of entering exclusive discussions with Skydance. Sony Pictures is reportedly contemplating a new joint bid with Apollo, but if they proceed, it would be after the exclusivity period concludes.
The negotiations were initially reported by CNBC.
