Source: Sharecast
In a complex deal announced on Monday, Skydance's founding Ellison family and its backers RedBird Capital Partners will take over National Amusements, the holding company of Paramount which also owns CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV.
National Amusements has been held by the Redstone family for four generations and has been a majority voting shareholder of Paramount Global for more than 35 years.
"Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king," said Shari Redstone, the head of National Amusements and Paramount Global's chair.
"Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment. As a longtime production partner to Paramount, Skydance knows Paramount well and has a clear strategic vision and the resources to take it to its next stage of growth. We believe in Paramount and we always will.”
The deal, which values Skydance at $4.75bn, will see Skydance Investor Group invest $2.4bn in cash to buy National Amusements, and $4.5bn to Paramount's shareholders, as well as $1.5bn of primary capital to be added to Paramount's balance sheet.
Under the terms of the all-stock deal, Paramount's Class A stockholders will receive $23 per share, while Class B stockholders will get $15 a share, marking 28% and 48% premiums respectively.
The new company, New Paramount, will be led by David Ellison as chairman and CEO, and Jeff Shell as president.