Paramount Global President Shari Redstone attends the Allen & Company Media and Technology Conference on Tuesday, July 11, 2023 in Sun Valley, Idaho.
David A. Grogan | cnbc
Skydance Media is ready to withdraw from its proposal Paramount Global That won’t happen unless it gets a firm commitment from Apollo Global Management and controlling shareholder Shari Redstone following the latest offering from Sony Pictures, according to a person familiar with the matter.
The exclusivity window for discussions between David Ellison’s Skydance and Paramount, backed by private equity firms RedBird Capital and KKR, expires on Friday and will not be extended, people familiar with the matter told CNBC’s David Faber. Paramount shares rose following the report.
The consortium is awaiting word from Paramount’s special committee on whether the panel will recommend its bid to Redstone to acquire the company. Now, with Apollo and Sony having formally expressed interest in acquiring the company for around $26 billion, Skydance Group is looking to Redstone to reaffirm its commitment to the deal.
The Skydance consortium is not eager to become a stalking horse offer for Apollo and Sony, one of the people said. Still, depending on what Redstone says, Ellison may be willing to work with him, a second person said.
Spokespeople for Skydance, Redstone National Entertainment and Paramount’s Special Committee declined to comment Friday.
Apollo and Sony unveil their latest offerings CNBC reported earlier on Thursday. A special committee is currently considering the bid, the people said.
As part of Skydance latest deal On the table, Redstone could take as little as $2 billion for its controlling stake in Paramount, which is less than Skydance’s initial offer. Consortium is contributing additional capital Make payments to common, Class B shareholders That’s at a roughly 30% premium to the undistributed trading price of about $11 a share, CNBC reported. In total, Redstone and Skydance will contribute $3 billion, according to people familiar with the matter, with the majority going to Class B shareholders.
Part of the deal values Skydance at about $5 billion, the people said.
Earlier, Redstone had rejected an offer from Apollo in favor of exclusive negotiations with Skydance. Redstone preferred a deal that would keep paramount together, as Skydance will offer, CNBC previously reported. The company is likely to be broken up by a private equity firm.