Paramount and Skydance agree to terms of a merger deal

The Paramount logo is displayed at Columbia Square along Sunset Blvd in Hollywood, California on March 9, 2023.

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Paramount and Skydance have agreed to terms of a merger, which will likely be announced in the coming days, CNBC’s David Faber reported Monday.

A Paramount special committee and the buying consortium — David Ellison’s Skydance, backed by private equity firms RedBird Capital and KKR — agreed to the terms. The deal is awaiting signoff from Paramount’s controlling shareholder, Shari Redstone, who owns National Amusements, which owns 77% of class A Paramount shares, Faber said Monday.

The agreement comes after weeks of discussion and after a recent competing offer from Apollo Global Management and Sony Pictures.

The deal currently calls for Redstone to receive $2 billion for National Amusements, Faber reported Monday. Skydance will buy out nearly 50% of class B Paramount shares at $15 apiece, which will leave the holders with equity in the new company.

Skydance and RedBird will also contribute $1.5 billion in cash to Paramount’s balance sheet to help reduce debt. Following the close of the deal, Skydance and Redbird will own two-thirds of Paramount, and the class B shareholders will own the remaining third of the company, Faber reported.

This is breaking news. Please check back for updates.

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