June 12, 2024
Shari Redstone has called an end to talks with David Ellison’s Skydance Media, ending the potential sale of a controlling stake in Paramount Global after some six months of negotiations.
The move by Redstone, Paramount’s largest shareholder, came just as it seemed a deal was close. A special committee of Paramount’s board had been scheduled to discuss a proposed agreement when it received news that Redstone had pulled the plug on discussions.
Redstone had been widely expected to sell her family’s stake to Ellison as part of a $2.25 billion deal for the family’s holding company, National Amusements. It was one element of an $8 billion transaction that would have resulted in the merger of Paramount with Skydance.
After reaching a deal on economic terms, National Amusements said it “could not come to agreement” with Skydance on other, unspecified issues, without going into detail.
Redstone is now likely pursue a sale of National Amusements without trying to merge Paramount into another company, according to The WSJ.
Shares in Paramount dropped 8 per cent on June 11th following the news.