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Paramount Stock Price Rose, Approves Skydance Merger

On Friday, Paramount Global’s stock price increased, and it announced late Sunday that its board approved its takeover of Skydance Media.

Its shares jumped by 1.84% to $20.47 apiece on July 05. However, they fell by -1.91% after hours to $20.08 per share on Saturday.

Moreover, the company’s approval to take over the studio over an $8.00 billion deal ends months of speculation about the agreement.

Paramount class A stockholders will get $23.00 a share in cash or stock. Meanwhile, its class B shareholders will receive $15.00 per stock, totaling the cash consideration for public shareholders at $4.50 billion.

In addition, the overall agreement includes a $4.20 billion investment in Paramount by the Ellison Family and Redbird Capital. Also, it involves a $1.50 billion primary capital for the combined firm called New Paramount.

On the other hand, Skydance will own around 70.00% of New Paramount’s outstanding shares after the deal. The agreement would grant the media company access to its studio assets, streaming service, and channels.

According to its global chair, the merger hopes to enable continued success in the fast-changing environment.

Earlier this year, a special committee of the entertainment conglomerate was created to manage the deal and approve the merger.

The new entity will be headed by David Ellison, chairman and CEO of Skydance. Former NBC Universal CEO Jeff Shell will acquire the president position.

Redstone Era Closed Amid Paramount Deal

Paramount and Skydance’s agreement marks the end of an era for the Redstone family. Their reign transformed drive-in movie theaters into a media empire that integrated Paramount Pictures and other cable networks.

In April, Chief Executive Bob Bakish was ousted after clashing with Shari Redstone over the Skydance deal.

Previously, the media company agreed to acquire the Redstone family’s National Amusements, which owned 77.00% of Paramount’s voting share. According to analysts, this increased the family’s payout for the sale to $1.75 billion.

Additionally, Shari Redstone said they plan to build on Paramount Global’s competitive advantages to drive its success.

 

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