Laura Iancu’s Post

Letter Head "A major Paramount shareholder has penned a letter to the board urging the company to avoid taking a “sub-optimal” bid from Skydance Media. The letter comes from Matrix Asset Advisors Inc which owns 355,445 Paramount shares. 'As reported, this deal focuses on monetizing Ms. Redstone’s shareholding for cash at a significant premium. The vast majority of shareholders would not receive a similar premium and would be forced to finance a speculative investment.' Matrix goes on to say that it is 'especially galling' that the board has not seriously considered a $26 billion cash offer from Apollo Global. 'It is unfortunate that Ms. Redstone finds herself in an urgent need to raise cash at a time when Paramount’s stock is at a low ebb. But her unique problem should not penalize the other 90% of shareholders.'" https://lnkd.in/eGWqJKp8 Matrix's point is sharp. But note, they are commenting on a deal structure based on "reporting." It's also quite worth noting that... "To puzzle through the options, Paramount’s board has formed an independent committee. If the terms aren’t appealing to the board, the board can decide not to recommend it. Redstone has recused herself from the committee. 'The special committee has a lot of power.'” https://lnkd.in/enajHser I won't play parlor games on the #Skydance or Apollo offers - simply because I do not have enough actual details to critique or defend either - IMHO, something all of Media's chattering class should heed. HOWEVER... What I think is getting lost in all this Palace intrigue, is the size and scale of what's TRULY needed AFTER any deal is done (if one gets done). Paramount's challenges are mimicked in HQs across the Media Universe. They don't need a white knight from Oracle to simply come in and buy them, as if they can be whisked away one day and magically find themselves on the pathway to Utopia the next. This is not about finding SpongeBob a backer to take on Peacock, Disco Bros & Mickey Mouse. (Mr. SqaurePants could not be reached for comment.) Those skirmishes from the cable & streaming wars are done. Anyone STILL waging them is like a stranded soldier in the Pacific, still taking shots at imaginary enemies who've long since decamped. AFTER the purchase price AND the assumption of $16 BILLION in debt, the new owner will need to invest (BILLIONS MORE) to remake Paramount into a fighting force ready to combat Google, Amazon, Apple, Microsoft, and Meta - the battlefronts of the Media's new war. THIS is why I've long advocated that Apple buy #Paramount. They could get it by regulators, they are now in a desperate need for new IP blood and subscriber influx, and they are one of the only players in the Media Universe with the cash on hand to do what is RIGHT for the enterprise. But, hey, I don't run an investment bank, so what do I know?

Paramount stock jumped on Wednesday, gaining about 7% after The Wall Street Journal reported the media giant's proposed merger with Skydance Media is back on the table in a new form. Shari Redstone, who controls Paramount through her family's holding company National Amusements, ended merger talks with Skydance in June after months of back and forth talks. Under the new proposed agreement, according to the Journal, Skydance would purchase National Amusements for $1.75 billion and then merge with Paramount, which owns a slew of media assets, including CBS, BET, SHOWTIME, and MTV, along with its namesake studio business and streaming platform. The two sides have also agreed to a 45-day "go-shop period," which allows other potential bidders to submit offers. "It's just a whole lot of uncertainty," Bloomberg Intelligence senior analyst Geetha Ranganathan said of the new deal in an interview with Yahoo Finance, adding the terms are "not very clear at this point." More: https://lnkd.in/exGAphde #yahoofinance #finance #entertainment #money #stocks #investing #markets

This week’s most important private equity news (2/3)   Paramount Global's shares surged as Sony Pictures and Apollo Global Management made a $26bn offer for the troubled media giant. Offer made by Sony's CEO and Apollo's partner, lifting Paramount's shares by 12%. Paramount, home to Paramount Pictures, CBS, and MTV, among others, faces struggles in streaming transition and internal power conflicts. CEO Bob Bakish ousted amid clashes with controlling shareholder, Shari Redstone. Skydance Media merger considered, sparking shareholder concerns.    Full note: https://lnkd.in/e2gChP3A   #privateequity #newsweek #BloomCapital

🏔 Paramount has been at the center of media merger talks for years. Now, the company's fate could soon be determined with a key negotiation window set to expire today. 😠 Paramount's nonvoting shareholders have publicly expressed concerns over the terms of a Skydance deal, which they say unfairly benefits Shari Redstone, the company's controlling shareholder, at the expense of other investors. 👀 Skydance isn't Paramount's only suitor either. Sony Pictures Entertainment and private equity firm Apollo Global Management have formally expressed interest in purchasing the media giant for $26 billion, according to a source familiar with the situation. Many twists and turns to this saga...but could it be coming to an end? I break down what we know and how we got here in my latest for Yahoo Finance #paramount #mergersandacquisitions #media #dealmaking #business #streamingwars #businessnews #financenews #skydance #apollo #sony

Let's remember, that back in 2021, Paramount was offered up to $6B in cash by Blackstone for the now-deceased Showtime property. Last year, in 2023, Paramount was offered $3B in cash from its former Chief Content Officer for, again, the now-deceased Showtime property. And also last year, Paramount turned down a reported $2B from Tyler Perry, and a possible $3B from Byron Allen, both of which wanted to purchase BET. Now, we're sitting here reading an article about how the company is going to get a lowly $3b "cash infusion", at the cost of severely diluting Paramount shareholders while further enriching Shari Redstone. The arguments back then were that the deals weren't accretive and that Paramount could generate that cash via its operating plan. So much for that. What seems more obvious today is that Paramount wasn't simply searching for a lifeline or a few billion dollars in cash. They were searching for a way out—a sale of the company—and they hoped these hyped-up bids for smaller pieces of the puzzle would drive up their overall value. But they didn't. And during one of the best 12-month runs in stock market history, Paramount is now worth half of what it was a year ago. They're now selling the company for scraps, and the investors are getting screwed in such a way that it's inevitable that there will be a shareholder lawsuit. So what happened here? A failure of leadership. Failing leadership by Shari Redstone who didn't have the "aftersight" to do what Rupert Murdoch did. Failing leadership by Bob Bakish who didn't have the temerity to stick to his original plan of being an arms dealer and broad-based content creator. Failing leadership by David Ellison for getting his dad's money all tied up in a lofty media property and needing to find a way to pay Daddy back. And lastly, failing investing leadership by shareholders. Suppose you stuck around for this ride, for this long, in a company absolutely controlled by someone who has made wrong move after wrong move since wrestling the company away from her daddy. In that case, honestly, it's hard to feel sorry for that shareholder, as you should've known what you were getting into.

#ParamountGlobal's future looks uncertain! Shari Redstone's shakeup, with Bakish's removal and a proposed "majority of the minority" vote on the Skydance deal, throws a spotlight on media consolidation trends (remember that fascinating Town podcast episode?). A Skydance merger could create a content giant, but will it benefit Paramount shareholders? The fight for Paramount's future is on, with implications for the entire media landscape. #mediamergers #hollywood #entertainmentbusiness https://lnkd.in/gd5NdvhZ

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.

Bronfman Joins Forces with Roku for Potential Last-Minute Paramount Bid - Another 25th hour surprise could be in store for Paramount as Edgar Bronfman Jr. is reportedly still exploring a bid for the media giant, even as the go shop period on their merger with Skydance Media comes to a close. Bronfman is reportedly partnering with Roku, along with private equity firm Fortress Investment Group, and Steven Paul who was considered a possible suitor for Paramount after the last Skydance deal collapse. While Paul had already expressed interest, and a private equity group for financing make sense, Roku is a surprising addition to the mix. Best known as a streaming device maker, the company is also a big player in advertising and operates the Roku Channel a FAST and premium channel service on its devices. While the Roku Channel was one of the earliest FAST platforms, it’s quickly been overtaken by cross-platform rivals like Paramount-owned Pluto TV. Thus Roku could benefit from taking over a competitor in the FAST space, and bring some streaming tech expertise to the mix with two media-savvy partners in Bronfman and Paul. #freecast corp.freecast.com https://lnkd.in/eZ7i9RYd

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

**Monday afternoon deal headlines: Disney/FuboTV, Duke's Mayo, Clarios dividend recap, Nippon Steel lawsuit, bacon IPO** Disney Agrees to Merge Hulu + Live into Fubo, Settles Venu Suit https://lnkd.in/eEDpfe2E (Bloomberg) -- Disney and streaming provider FuboTV agreed to combine their online live TV businesses, creating the second-biggest digital pay-TV provider. Advent Reaches Deal for Duke’s Mayo Owner Sauer Brands https://lnkd.in/e3abgCJp (Bloomberg) -- Buyout firm Advent International has agreed to acquire Sauer Brands, the owner of the Duke’s mayonnaise brand, from Falfurrias Capital Partners. Brookfield’s Clarios Said to Plan Raising Debt for Dividend https://lnkd.in/ec67xAWB (Bloomberg) -- Clarios International is considering taking on new debt in order to hand cash to its owners, including Brookfield and Canadian pension fund CDPQ, according to people familiar with the matter. Nippon, US Steel Sue to Save Merger After Biden Blocks It https://lnkd.in/e_djBEx2 (Bloomberg) -- Nippon Steel and US Steel jointly filed a pair of lawsuits in a last-ditch effort to preserve their planned merger, which was blocked last week by President Joe Biden. World’s Top Pork Producer Smithfield Files for US IPO  https://lnkd.in/eRxtkSvG (Bloomberg) -- Smithfield Foods, the world’s largest pork producer, has filed for its initial public offering in the US, joining a growing number of firms pursuing market debuts this year.