Shari Redstone, Chairwoman of Paramount Global, attends the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, on Tuesday, July 11, 2023.
David A. Grogan | CNBC
Skydance Media is ready to withdraw from its offer Paramount Global Unless it receives a firm commitment from majority shareholder Shari Redstone following the recent offer from Apollo Global Management and Sony Pictures, according to a person familiar with the matter.
The exclusivity window for talks between David Ellison’s Skydance, backed by private equity firms RedBird Capital and KKR, and Paramount ends Friday and will not be extended, people familiar with the matter told CNBC’s David Faber. Paramount shares rose following the report.
The consortium is awaiting word from Paramount’s special committee on whether the panel will recommend its bid to acquire the company to Redstone. Now that Apollo and Sony have officially expressed interest in acquiring the company for approximately $26 billion, Skydance Group is looking to Redstone to reaffirm its commitment to the deal.
The Skydance consortium is not keen on being a stalking horse bid for Apollo and Sony, one of the people said. However, depending on what Redstone says, Ellison could be willing to work with her, a second person said.
Spokespeople for Skydance, Redstones National Amusements and Paramount’s special committee declined to comment Friday.
Apollo and Sony made their latest offer on Thursday, CNBC previously reported. The special committee is currently reviewing the offer, the people said.
Under Skydance’s latest deal, Redstone could ask for less than $2 billion for its majority stake in Paramount, which is less than Skydance’s original offer. The consortium is raising additional capital to pay Class B common shareholders a nearly 30% premium to the undisturbed trading price of about $11 per share, CNBC reported. Redstone and Skydance would contribute a total of $3 billion, with the vast majority going to Class B shareholders, according to people familiar with the matter.
Skydance’s value under the deal remains around $5 billion, the people said. The Apollo-Sony offer, like Skydance’s offer, includes a control premium for Redstone, people familiar with the matter say.
Previously, Redstone rejected an offer from Apollo in favor of exclusive discussions with Skydance. Redstone has favored a deal that would keep Paramount together, like Skydance’s offer would do, CNBC previously reported. A private equity firm will likely break up the company.
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2024-05-04 00:19:28
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