'Paramount And Skydance Inch Closer To A Merger As Key Hurdle Looms' - CNBC
Portfolio Pulse from Benzinga Newsdesk
Paramount Global and Skydance Media are nearing a merger, with a deal potentially closing in May. The merger involves valuing Skydance at around $5 billion and merging it with Paramount Global. David Ellison is set to become CEO, and Jeff Shell as president, replacing current CEO Bob Bakish. A significant hurdle remains with Paramount's carriage renewal with Charter Communications, which could impact the deal's value. Additionally, Apollo and Sony have shown interest in buying out Paramount Global shareholders, but the special committee favors Skydance's offer for its future upside and cleaner balance sheet. Paramount's reliance on traditional TV and upcoming earnings report add complexity to the negotiations.
April 25, 2024 | 7:39 pm
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Paramount Global is in advanced talks for a merger with Skydance Media, potentially valuing Skydance at $5 billion. The merger could see leadership changes, with David Ellison becoming CEO. A major challenge is the carriage renewal with Charter Communications, which could affect Paramount's value. The deal, favoring Skydance over other bids, aims to keep Paramount public with a cleaner balance sheet.
The merger with Skydance Media is likely to have a positive short-term impact on Paramount Global's stock (PARA) due to the potential for a cleaner balance sheet and the strategic value Skydance brings. However, the carriage renewal with Charter Communications poses a risk that could temper gains depending on the outcome. The leadership changes and the strategic direction under new management could be viewed positively by the market, assuming the merger proceeds smoothly and the Charter Communications deal is favorable.
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