Shares of Paramount Global (PARA) are up 12% on news that the film and television studio may have reached a deal to merge with privately held entertainment company Skydance Media.
The two companies had previously been negotiating a merger but the talks ended in June without an agreement being reached.
Multiple media reports say the newest deal on the table would see Skydance Media buy National Amusements, the parent company of Paramount Global, and then merge the two entertainment concerns.
The proposed deal is being reviewed by a special committee of Paramount’s board of directors and nothing official has been announced by either company.
Skydance Media is expected to pay $1.75 billion U.S. for National Amusements. Both sides have agreed to a 45-day period during which other bidders can submit offers, according to news reports.
In addition to its film studio, Paramount Global also owns the CBS television network and specialty cable channels such as Nickelodeon and MTV. Film properties include “Indiana Jones” and “Mission: Impossible.”
The previous negotiations between Skydance Media and Paramount Global reportedly broke down over a stipulation that a deal be approved by a majority of Paramount shareholders.
National Amusements has apparently removed the shareholder approval requirement, clearing the way for the merger to proceed.
Prior to today (July 3), the stock of Paramount Global had declined 34% over the previous 12 months and was trading at $10.72 U.S. per share.
Tech Insider
