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David Ellison’s Skydance has reportedly made an initial proposal to acquire Shari Redstone’s stake in National Amusements, the family’s controlling interest in Paramount Global, as detailed in a Bloomberg report.
Representatives for Skydance, National Amusements, and Paramount Global have all declined to offer any comments on the matter. However, according to Deadline’s sources, the situation remains unchanged in Skydance’s attempt to acquire the media company, which was first covered in Deadline in early December. This suggests that there is still a long way to go before a potential deal for Paramount Global can be finalized.
National Amusements holds almost 80% of Paramount Global’s voting shares. Ellison’s main interest lies in the studio, but Paramount is not willing to sell its most valuable asset independently. Acquiring Redstone’s NAI stake would be a more cost-effective option than purchasing the entire company outright. The plan is for Ellison to merge Skydance and Paramount, and then explore options to sell off the company’s other assets.
Warner Bros. Discovery has also shown interest in NAI/Paramount Global, with CEO David Zaslav engaging in discussions with both Shari Redstone and Paramount Global CEO Bob Bakish. However, the proposal received negative feedback from Wall Street due to WBD’s financial struggles following the merger of Discovery and Warner Media.
Rumors regarding a potential Paramount deal have increased as the company’s financials have been affected by streaming losses, the ongoing decline of linear television, and a weak advertising market. The company is preparing to implement a round of job cuts affecting hundreds of employees.
Ellison’s supporters would include his father, billionaire Oracle co-founder Larry Ellison, who are the majority shareholders of Skydance. The rapidly expanding studio has been involved as a financier and producer of Paramount films, such as the highly successful Top Gun: Maverick, as well as television series and an animation division with a multi-year deal with Netflix.
The decision to pursue National Amusements has raised controversy among some Paramount Global investors. While Shari Redstone would receive a premium for her NAI stake in this scenario, Paramount Global shareholders would not.
Anthony D’Alessandro contributed to this report.
