Who will buy Paramount?

[Moe]

@lowell See above - news about Skydance bought Paramount.

 

[Action!]

Now the question is: Is this the final merger deal.

 

[Daikun]

We have a deal????

Well, that's a surprise. I thought those merger talks broke down earlier.

 

[PF9]

If Skydance does the things I am asking them to do with MTV and Nick then that would sweeten the deal.

 

[harry580]

a lot of questions became running in like:
would skydance keep the movie theaters and that paramount owns the movie theaters as a answer to sony buying Alamo drafthouse, would showcase cinemas become a big chain again like they were 20 to 15 years ago?

 

[lowell]

@lowell See above - news about Skydance bought Paramount.

Actually, what's interesting in this is lawyers won't be ponied up if lawsuits are filed but the company is actually instead being given a "go-shop" period to get better offers:

"The deal would also give National Amusements a greater degree of protection against potential shareholder lawsuits over the deal. That had been a sticking point in earlier negotiations, given significant shareholder angst about the transaction.

The deal is expected to offer Paramount a 45-day “go shop” period in which it can talk to other suitors about a potential deal, three of the sources said. The billionaire Barry Diller and his digital media conglomerate, IAC, have expressed interest in National Amusements, as has Edgar Bronfman Jr., the media and finance executive, and Steven Paul, the Hollywood executive best known for his work on the “Baby Geniuses” franchise.

The Paramount board committee will now evaluate whether those new terms will be sufficiently palatable for shareholders."

Paramount and Skydance Near Merger Deal

Just weeks after the Paramount’s controlling shareholder and Skydance scuttled their talks about a potential deal, the two media companies have tentatively agreed to a merger.

www.nytimes.com

Given how many twists and turns there have been in this drama saga, it wouldn't surprise me if a bidding war happens at this point.

The goal is now likely refocused to selling the whole company for the highest price possible, though.

The Redstones, the board, and the non-Redstone shareholders would all stand to benefit from that.

But yeah, even with this news, nothing is guaranteed to happen at all so don't jump to conclusions on anything just yet.

 

[JulianRO]

Skydance reaches tentative deal to acquire Paramount for $1.75 billion

The deal would involve a purchase of National Amusements, then an immediate merger with the famed movie studio.

thedesk.net

 

[Daikun]

Excuse me... $1.75 billion?
That seems...awfully low, considering all the assets they own.

 

[Moe]

Excuse me... $1.75 billion?
That seems...awfully low, considering all the assets they own.

Yeah, it is and Disney paid whooping $70 billions for 20th Century.

 

[harry580]

please let redstone sell paramount to skydance already, I sick & tired of her saying yes but later say no to it

 

[lowell]

Excuse me... $1.75 billion?
That seems...awfully low, considering all the assets they own.

That's technically only for their family company, National Amusements.

The "go-shop" period will actually be looking for higher offers on both that and/or Paramount Global.

please let redstone sell paramount to skydance already, I sick & tired of her saying yes but later say no to it

Eh, it wouldn't be that surprising if the Redstones want to see a bidding war ignite over this at this point.

If they're bailing by cashing out and the non-Redstone shareholders want to cash out as well, they're going to look into maximizing the valuation as high as possible on the way out.

But yeah, again, nothing is guaranteed to happen at all so don't jump to conclusions on anything just yet.

 

[Elijah Abrams]

That's technically only for their family company, National Amusements.

The "go-shop" period will actually be looking for higher offers on both that and/or Paramount Global.

What’s the "go-shop" period?

 

[lowell]

What’s the "go-shop" period?

So, basically, at this point, the Redstones are actually opening a window where all types of offers can come in.

They are essentially serving as their own auctioneer at this point, looking for the highest bidder for either of the companies or even both of them if they can offload it all.

It's about making as much money as possible on their way out given the Redstones themselves, the board, and the non-Redstone shareholders all stand to benefit from that.

 

[Moe]

I do think that highest bidder for all of Paramount owned studios and libraries would be $20 billions, so average would be $10 to $15 billions.

Major studios aren't pleased to pay too much for libraries nowadays because return isn't impressive in streaming era, also their debt size grows with acquisition that make harder to pay off in long term.

 

[lowell]

I do think that highest bidder for all of Paramount owned studios and libraries would be $20 billions, so average would be $10 to $15 billions.

Major studios aren't pleased to pay too much for libraries nowadays because return isn't impressive in streaming era, also their debt size grows with acquisition that make harder to pay off in long term.

We'll definitely have to see what the ultimate number will be but in all sense, the Redstones, the board, and the non-Redstone shareholders will be walking away with their pots of gold at the end of the day.

 

[aegisrawks]

How about "No one"? Why is there such a DESPERATE NEED to constantly sell and buy corporations? What does this achieve?

 

[Silverstar]

How about "No one"? Why is there such a DESPERATE NEED to constantly sell and buy corporations? What does this achieve?

The answer is very simple:

Mo' money means a company gets to be a big fish, and when you're a big fish there's less chance of you being swallowed by a bigger fish. I agree these Hollywood playas have gone crazy with the nonstop Mergers and Acquisitions, but it's the hole they've all dug for themselves with good ol' fashioned naked greed. They're all in a mad scramble to stay on top. It's like playing Monopoly: whoever controls the most utilities wins.

 

[themidnightlore]

Honestly, Skydance as the options went is probably the less horrible pick. (Too bad that the Redstone family, while they do want to sell, somehow are incredibly picky?)

 

[Moe]

We'll definitely have to see what the ultimate number will be but in all sense, the Redstones, the board, and the non-Redstone shareholders will be walking away with their pots of gold at the end of the day.

I’m just saying that acquisition wouldn’t be lucrative as Disney bought $71 billions in 2019, despite about how big is Paramount with movie studios, cable channels, CBS, Paramount+ and Showtime.