Skydance and Bronfman Face-Off for Paramount – Merger Arbitrage Mondays

Paramount Global (PARAA): $24.20

Market Cap: $8.02 B

Like a big-budget musical bankrolled by a large movie studio, Paramount Global danced with multiple partners before finally reaching a deal with Skydance on July 7. Or so we thought. Recent developments have shown that Paramount is back for an encore.

Skydance Media and Paramount Global had entered into a merger agreement valued at $28 billion, with plans to form a new entity called New Paramount. The deal involved a two-step process where Skydance would first acquire National Amusements for $2.4 billion in cash, followed by the merger with Paramount. As part of this comprehensive agreement, Skydance committed to providing $1.5 billion to strengthen Paramount’s balance sheet, along with offering shareholders $4.5 billion in cash or stock.

In an article covering the merger last month we wrote the following about the structure of the deal:

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