×

Subscribe Today

Get our free articles delivered directly to your email!

Continue reading

InsideArbitrage Potential Deal Alert: Warner and Paramount CEOs Discussed Possible Merger of Companies

  • December 20, 2023

POTENTIAL DEAL DETAILS

StockParamount GlobalSymbolPARA
Date Announced12/20/2023Source Wall Street Journal
TypeNews Report

According to WSJ, Warner Bros. Discovery (WBD) Chief Executive David Zaslav met Paramount (PARA) CEO Bob Bakish this week and discussed a possible merger between the media giants.

The executives broached the idea of a deal, but no formal talks between the companies are under way.

Warner Bros. Discovery, Inc. Investor Relations

Paramount Global Investor Relations

Update(s):

January 31, 2024: According to Bloomberg, Media mogul Byron Allen has made a $14.3 billion offer to buy all of the outstanding shares of Paramount Global (PARA).

February 7, 2024: According to CNBC’s David Faber, Warner Bros.Discovery (WBD) likely doesn’t have any interest in acquiring Paramount Global (PARA).

March 12, 2024: Reuters reported that Apollo Global Management (APO) has recently reached out to a special committee formed by Paramount Global (PARA regarding a potential acquisition or asset purchase.

March 20, 2024: According to WSJ, Private-equity firm Apollo Global Management (APO) has made an $11 billion offer to buy Paramount Global’s (PARA) film and TV studio. The bid comes as an independent committee of the company’s directors is reviewing another offer from Skydance Media to merge with all of Paramount.

April 3, 2024: According to a New York Times report, Paramount (PARA) and Skydance Media have been discussing entering exclusive talks for a possible deal.

April 3, 2024: According to WSJ, members of Paramount Global’s (PARA) board agreed to enter exclusive merger discussions with Skydance, favoring it over a recent $26 billion all-cash offer from private-equity firm Apollo Global Management.

April 5, 2024: National Amusements, which controls Paramount Global through a voting stake and owns a movie theater chain, is in exclusive talks to sell itself to Skydance Media. According to WSJ, under the terms of a deal being discussed between Shari Redstone’s National Amusements and Skydance, Redstone’s firm would receive more than $2 billion in cash as part of the first step of the transaction.

April 10, 2024: According to WSJ, Four Paramount Global (PARA) directors are expected to leave the board soon, as the Shari Redstone-controlled entertainment company discusses a merger with Skydance Media.

Dawn Ostroff, a former Spotify executive, Nicole Seligman, an attorney and former president of Sony Entertainment, Frederick Terrell, a veteran investment banking executive, and Rob Klieger, Redstone’s longtime attorney, are expected to step down from the board in the coming weeks.

Notably, Ostroff and Seligman are on a special independent board committee to pursue the best possible deal for Paramount. Klieger is Redstone’s longtime attorney.

April 11, 2024: According to Reuters, some Paramount Global (PARA), investors are speaking out about a possible merger with Skydance Media, calling on the U.S. media conglomerate to look at other options and to treat shareholders equitably if this deal should be inked.

April 17, 2024: According to a report from CNBC’s David Faber, Paramount Global (PARA) is not likely to reach a deal with Skydance Media, Redbird for a deal during a 30-day exclusive window it’s negotiating with the potential buyer. The 30-day window to speak to David Ellison’s Skydance is set to expire around May 3.

April 18, 2024: According to The New York Times, Sony (SONY) has been talking with Apollo Global Management (APO) about a joint bid to acquire Paramount (PARA) Sony Pictures CEO Tony Vinciquerra has been talking with Apollo over the past week about a possible joint all-cash bid.

April 22, 2024: According to a report from CNBC’s David Faber, Sony (SONY) hasn’t made a bid for the entertainment company.

April 25, 2024: According to CNBC, Paramount’s special committee and David Ellison’s Skydance and RedBird Capital, are close to agreeing on a $5B value for Skydance, which will be merged with Paramount (PARA).

April 26, 2024: WSJ reported, that Paramount Global’s (PARA) board is considering replacing Chief Executive Bob Bakish and installing a committee of top executives to run the entertainment giant on an interim basis.

April 28, 2024: According to Bloomberg, The Redstone family and Skydance Media CEO David Ellison have both made concessions to make a potential change in control at Paramount Global (PARA), more appealing the company’s other investors.

April 29, 2024: According to The New York Times, Skydance offered to provide the combined company with a $3 billion cash infusion that it can use to pay down debt and buy back stock. Skydance also offered to give Paramount (PARA) shareholders a larger stake in the combined company.

April 29, 2024: Paramount Global announced that Bob Bakish, President and CEO, is stepping down from his role as CEO and from the Board of Directors.

May 2, 2024: WSJ reported, that Sony Pictures (SONY) and private-equity firm Apollo Global Management (APO) have submitted an all-cash, $26 billion offer for Paramount Global (PARA).

May 3, 2024: According to Variety, the expectation at Paramount (PARA) is that neither of the two offers in play — Skydance Media-RedBird Capital Partners and Sony Pictures (SONY)-Apollo Global Management (APO)— will come to fruition. Redstone is said to have reluctantly concluded that a deal with David Ellison’s Skydance will not be possible.

May 8, 2024: According to NYT, Sony Pictures (SONY) and Apollo Global Management (APO) plan to break up Paramount Global (PARA) after the acquisition. The plan would include auctioning off CBS, cable channels like MTV, and the Paramount Plus streaming service. Paramount Pictures would be combined with Sony’s business.

May 15, 2024: According to CNBC, Sony (SONY) may be rethinking its takeover bid for Paramount Global (PARA).

Disclaimer: Our intent with this section of the website is to present potential deals that appear to be in the pipeline. These potential deals are ones where i) the company has indicated that it is "seeking strategic alternatives", ii) there has been an unsolicited bid for a company as mentioned in a press release by the company or iii) news about the deal has been published by a leading news organization like The Wall Street Journal, The New York Times, Bloomberg, Financial Times, The Washington Post, Reuters and The Associated Press. As best as possible we will try to avoid baseless rumors. There is a high probability that many of these potential deals may not materialize and if they do, the terms of the deal may be different from what was initially reported. Please do your own due diligence before buying or selling any securities mentioned on this website. We do not warrant the completeness or accuracy of the content or data provided.