The share price of Paramount (PARA) suffered a drop of over 7% on Tuesday amid the ongoing buyout issues. The falling price coincided with the end of the go-shop period, during which the media company sought alternative offers.
Paramount Share Price Falls as Buyout Still to Be Decided
With billionaire Edgar Bronfman Jr. taking a step back from the battle to gain control of Paramount, it’s looking more likely that Skydance Media will, after a long period of speculation, be the winner of the race to buy the company. For now, PARA is operated by National Amusements (NAI), the holding company run by Shari Redstone and her family.
Charles Phillips is the chair of Paramount’s special committee, and he commented:
Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our Special Committee continues to believe that the transaction we have agreed with Skydance delivers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape.
The agreement with Skydance is worth around $8bn, but the $6bn takeover offer from Bronfman earlier in August seemed set to complicate the deal. However, Bronfman encountered problems securing financing for the mammoth deal despite investors, including BC Partners Credit and Fortress, being involved. That led to him withdrawing from the process, but the chairman of FuboTV recently said they still believe that Paramount Global is an extraordinary company.
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The purchase by Skydance should be completed in the first half of 2025, although regulatory approval will be needed before it can be finalised. Skydance CEO David Ellison is expected to become the CEO of the new combined company.
