Daniel McConnell’s Post

UPDATED with latest on Paramount merger talks: A one-month exclusive negotiating window between Paramount Global and Skydance ended at midnight last night and has not been renewed. But the David Ellison company is still in the mix as a special committee of Paramount’s board meets today. The group is considering how to approach a very different all-cash offer from Sony and Apollo. Deadline hears that the committee may be lookin at a so-called “go shop” provision, which allows a public company to explore competing offers even it’s already has a firm purchase offer in hand. The duration of a go-shop period is usually one to two months.

After much anticipation, Paramount's special committee has reached a potential merger deal with Skydance Media, led by David Ellison, and private-equity supporters RedBird Capital and KKR. The agreement, pending Shari Redstone's approval, aims to merge Skydance with Paramount while keeping Paramount a publicly traded company. This merger could end the Redstone family's control over the media conglomerate. Class B shareholders may sell a portion of their shares at $15 each if the deal goes through. Stay tuned for more updates on this development! #paramountcbs #ctv #streamingdeals.

Redstone will likely sit tight now, pursuing deals that buy her out but don’t involve a merger — cleaner and simpler. Edgar Bronfman Jr. with Bain behind him is exploring an offer, as is producer Steven Paul with some deep-pocketed partners. But she also may not do anything immediately, choosing to pay down debt, raise the company’s value and try to sell it again at a later date and take a shot on the new CEO troika of Brian Robbins, George Cheeks and Chris McCarthy. For in them is the confidence that they’ll do what former Paramount Global CEO Bob Bakish didn’t do: sell off assets such as BET and Showtime. At the annual shareholders meeting last week, Robbins, Cheeks and McCarthy laid out a path to divest non-core assets, unlock the value of content and possibly find a joint venture partner for streaming service Paramount+. As unorthodox as three chiefs seem, they are seasoned executives and Redstone seems to wants to keep them in place for now.

The owner of Channel 5 in the UK, Paramount agrees to an $8bn (£6.3bn) merger with a billionaire tech heir, signalling an end to a months-long takeover saga. The media giant, previously known as Viacom and then ViacomCBS, and is world famous for its TV business and film studio has reportedly agreed to the terms of a merger with Skydance, a company set up by David Ellison, whose father is Larry Ellison, the Chief Technology Officer of Oracle. Towards the end of 2023, David Ellison’s entertainment company Skydance emerged as a potential bidder for the company amid growing interest from rival studios: - Harry Potter maker Warner Bros. had also been in talks about merging - Byron Allen, a high-profile US film and TV producer, also tabled a $14.3bn offer - More recently Sony Pictures was looking at agreeing a deal in partnership with private equity firm Apollo Global Management Skydance and Paramount have successfully collaborated on projects. The Top Gun: Maverick film was one of many hits made by Skydance, which also includes Mission: Impossible – Ghost Protocol. Paramount Global also controls a cluster of television channels, including: US network CBS, Nickelodeon, MTV, and Comedy Central amongst many others. Skydance’s bid had been backed by private equity firms KKR and RedBird Capital. According to CNBC, Shari Redstone would receive $2 billion for National Amusements, which has 77% of the voting power over Paramount. Redstone has yet to officially decided whether to go forward on the deal, and the terms are still to be worked out. However, if she does agree, it would end her family’s decades-long control over the media conglomerate and its predecessor companies. #television #media #mergers https://bit.ly/3RddFUT

🆕 #TMTnews 🔗 🔝 Skydance Media and Paramount Global agree to deal terms 🤝 Skydance and Paramount have signed a definitive agreement to establish "New Paramount" – a groundbreaking media and technology enterprise. 🌟Key Highlights: - 💵 Major Investment: The Ellison Family and RedBird Capital Partners are investing over $8 BLN into the new entity, acquiring National Amusements, Inc. - 👍 Stockholder Benefits: Class A stockholders to receive $23 per share, and Class B stockholders $15 per share, with a total of $4.5 BLN in cash available to public shareholders. - 👥New Leadership: David Ellison will serve as Chairman and CEO, with Jeff Shell as President. This dynamic team is set to rejuvenate Paramount and CBS brands. - 💡Innovative Vision: New Paramount aims to be a creative-driven hub for storytellers, enhancing content delivery via Paramount+ and Pluto, and revitalizing linear networks CBS and Paramount. - 🎯Strategic Repositioning: The plan includes boosting profitability, stability for creators, and expanding investment in digital platforms. 🔍 Transaction Details: - Skydance to merge with Paramount in an all-stock transaction, valuing Skydance at $4.75 BLN. - Skydance Investor Group to own 100% of New Paramount Class A shares and 69% of Class B shares post-transaction. - The cash election offers a 48% premium to Class B stock and a 28% premium to Class A stock as of July 1, 2024. 🚀Impact and Future Vision: - This merger consolidates financial and technological prowess with Paramount’s iconic IP, ensuring a creative-first, technologically advanced future. - Emphasis on animation, gaming, film, sports, news, and television, with enhanced digital presence. - Promises to preserve the 100-year legacy of Paramount and the cherished CBS brand, securing a prosperous future for the creative community. This merger represents an exciting transformation for the entertainment industry, promising stability, innovation, and growth for Paramount and its stakeholders. #Skydance #ParamountGlobal #NewParamount #MediaInnovation #EntertainmentTransformation #Leadership #Investment #Technology #ContentCreation #Merger

Are you wondering what this whole Paramount merger saga chatter is all about? Here are the highlights. What Happened Today 🍿Paramount extended the go-shop period by 15 days for Edgar Bronfman Jr. to refine his acquisition bid. (Go-shop period: a timeframe during which a company can seek and consider better acquisition offers after agreeing to a deal) 🍿 Bronfman raised his offer to $6 billion, including $1.7 billion to cash out shareholders and a $400 million breakup fee if chosen over Skydance. 🍿 Paramount's special board committee, led by Charles Phillips, is evaluating Bronfman's revised bid while Skydance retains the right to counter. Why Is It Important 🍿 The extension shows Paramount's board is seriously considering Bronfman's offer. 🍿 Bronfman's bid could lead to a significant change in Paramount's ownership and strategic direction. 🍿 The process is complex, involving major industry players and significant financial stakes. Industry Impact 🍿 Acceptance of Bronfman's bid could reshape the media landscape. 🍿 Skydance may counter with a higher bid, raising Paramount's value. 🍿 This merger could set new standards for media M&A, affecting deal structures and valuations. 🍿 The winning bid will impact Paramount's strategy, especially in streaming and international markets. What do you guys think? Who is it going to be?Skydance or Bronfman? Or is another player going to emerge out of left field? 👀 #paramount #entertainmentindustrynews

Will Paramount Global end up looking for a new dance partner, or will Skydance Media get to clinch a deal and celebrate with a victory dance? Our Funds Editor, Tom Cane, shared insights on the deal with The Hollywood Reporter, suggesting that Skydance Media holds a favorable position in negotiations with Paramount Global. However, reaching a mutually beneficial deal may prove challenging due to Paramount's dual-class structure. Tom also highlights Apollo and TPG as potential private equity bidders in the industry's consolidation. The anticipated Paramount sale could spur further M&A activity in the media and entertainment sector, driven by financial pressures and the need to compete with streaming giants like Netflix. Read more here: https://lnkd.in/eWcVQr99

Is It Happily Ever After for Paramount and Skydance? Having tracked the twists and turns of the Paramount Global and Skydance Media merger, this $4 billion deal stands out as particularly compelling. Paramount, after previously backing out of an agreement with Skydance and entertaining other suitors like Sony, has returned to Skydance. So, what has changed? In this definitive stock-for-stock merger, Skydance shareholders will receive 1.5 shares of Paramount for each Skydance share held. The transaction, expected to close in Q4 2024, is subject to regulatory approvals and shareholder consent. Skydance brings a robust content pipeline, innovative production capabilities, and a proven track record of blockbuster successes to the table. Paramount's return to Skydance suggests a strategic reassessment influenced by evolving market conditions and competitive pressures. The enhanced terms reflect a deeper commitment to leveraging Skydance's strengths, crucial in the streaming-dominated landscape. Is this a common merger strategy? Absolutely. Companies often revisit previous negotiations to adjust terms to current market realities and strategic goals. Paramount’s maneuvering demonstrates a calculated approach to securing the most advantageous deal. Will this merger succeed or fall through? Paramount has a 45-day “go-shop” period during which it can entertain better offers before sealing the deal with Skydance. This clause could make the situation reminiscent of a toxic ex who, despite their tumultuous past, finds themselves back in the spotlight. Paramount’s history of flirtations with other buyers and the presence of this shopping period might invite opportunistic contenders to make a play. The likelihood of the merger's completion hinges on whether Paramount finds a more compelling offer or proceeds with the current deal. As the industry watches this drama unfold, only time will reveal if this union will stand as a landmark achievement or just another complicated chapter in Hollywood’s M&A saga. #MergersAndAcquisitions #EntertainmentIndustry #Paramount #Skydance #CorporateStrategy #BusinessDeals #MediaMergers #StrategicAlliances #MarketTrends #StreamingWars

Paramount + Skydance: Shiv Roy (aka Shari Redstone) may have the last laugh. Lesson: Never underestimate a woman over 40. It remains to be seen if Ellison billions + private equity can save Paramount, one of the oldest film studios in the world. (At least they are buying at a relative discount compared to 2019.) For those wondering why all of these mergers, bundles, and content synergies are happening (e.g., WarnerBros/Discovery, Warner Bros./ Disney, Disney/Epic, Netflix/NFL, Apple/MLB), it's the quest for "eyeballs" in this post-pandemic, post-cable era. Sadly, the movie industry has yet to recover in this streaming era. Old cable titans such as Viacom (part of Paramount) are also suffering. Media empires are always built on scale... hence, the quest for mass audiences to monetize. P.S.- It's an intriguing contrast in parenting as it relates to how Sumner Redstone treated his daughter, vs. Larry Ellison and his children's media efforts (Skydance + Annapurna). Links in comments. https://lnkd.in/gF9pJDCe #media #paramount #skydance #mergers