Skydance, the production company founded by David Ellison, has reportedly made a preliminary offer to buy Shari Redstone’s stake in National Amusements. National Amusements is a family holding company that controls Paramount Global. While representatives for Skydance, National Amusements, and Paramount Global have declined to comment on the matter, sources suggest that negotiations are ongoing.
This potential acquisition comes as no surprise, as news of Skydance’s interest in Paramount Global was first reported in December. National Amusements currently holds about 80% of Paramount Global’s voting stock. Ellison’s primary interest lies in acquiring the studio, but Paramount is not willing to sell its crown jewel alone. By purchasing Redstone’s stake in National Amusements, Ellison would have a more affordable option than buying the entire company outright. The plan would involve merging Skydance and Paramount, with a focus on divesting the company’s other assets.
However, Skydance is not the only player eyeing Paramount Global. Warner Bros. Discovery, led by CEO David Zaslav, has also expressed interest in the media company. Zaslav has had conversations with both Shari Redstone and Paramount Global CEO Bob Bakish. Despite this, Wall Street has shown skepticism towards Warner Bros. Discovery’s proposition due to its existing debt and financial struggles since the merger of Discovery and Warner Media.
The rumors surrounding a potential deal with Paramount Global have intensified as the company faces financial strain. Streaming losses, the ongoing decline of linear television, and a weak ad market have all contributed to Paramount’s current predicament. In response, the company is planning a round of layoffs that will affect hundreds of employees.
David Ellison’s bid for Paramount Global is backed by his father, Larry Ellison, who is a billionaire and co-founder of Oracle. The Ellison family holds the majority of shares in Skydance. The studio has experienced significant growth and has been involved in financing and producing Paramount films such as the highly anticipated “Top Gun: Maverick.” Additionally, Skydance has a TV series and an animation division with a multi-year deal with Netflix.
While the potential acquisition through National Amusements may benefit Shari Redstone, some Paramount Global investors have expressed concerns. In this scenario, Redstone would receive a premium for her stake in National Amusements, while Paramount Global shareholders would not.
As negotiations continue, it remains to be seen whether Skydance will successfully acquire Shari Redstone’s stake in National Amusements and ultimately merge with Paramount Global. The outcome of these discussions will undoubtedly have a significant impact on the future of both companies and the entertainment industry as a whole.