"Skydance Offers Paramount A Deal Sweetener: A $3B Cash Infusion; The Terms Of The New Deal Would Provide Paramount Shareholders With An Investment To Pay Down Debt And Buy Back Stock" - NY Times
Portfolio Pulse from Benzinga Newsdesk
Skydance has proposed a revised deal to merge with Paramount, offering a $3 billion cash infusion to help pay down debt and buy back stock. This move aims to appease investors and secure a merger with Paramount, which has been under consideration for sale by its controlling shareholder, Shari Redstone. The investment would come from RedBird and David Ellison's family, enhancing the terms for Paramount shareholders.
April 29, 2024 | 3:45 pm
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Paramount is set to receive a $3 billion cash infusion from Skydance's backers, aimed at reducing debt and enabling stock buybacks, potentially enhancing shareholder value.
The $3 billion cash infusion from Skydance to Paramount is a significant financial boost that can be used to reduce Paramount's debt and fund stock buybacks. This financial maneuver is likely to be viewed positively by investors as it enhances shareholder value by improving the company's balance sheet and potentially reducing the number of outstanding shares, which can lead to a higher earnings per share (EPS).
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