11 votes

David Ellison set as chairman-CEO, Jeff Shell as president of Paramount; Shari Redstone to sell family empire to Skydance Media in $8 billion deal

Posted by cloud_loud
Tags: usa, movie industry, hollywood, business, mergers, movie studios, paramount pictures, skydance, ceo, david ellison, shari redstone, author.cynthia littleton, source.variety, short read
https://variety.com/2024/tv/news/paramount-skydance-ellison-redstone-acquire-deal-1236062041/

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Title
Skydance Media and Paramount Global Move Closer to Sale Agreement But Deal is Far From Done
Authors
Cynthia Littleton
Published
Jul 7 2024
Word count
286 words

1 comment

  1. skybrian
    Link
    Matt Levine has written about the attempts to make this deal a few times. Particularly this bit at the end: As I understand it, the issue is that Shari Redstone has 70% of voting shares but only a...

    Matt Levine has written about the attempts to make this deal a few times. Particularly this bit at the end:

    Upon closing, it will deliver immediate cash consideration at a premium to both the minority Class A and Class B stockholders, who will also benefit from what we believe to be considerable upside through continued equity participation in New Paramount.”

    As I understand it, the issue is that Shari Redstone has 70% of voting shares but only a minority of total shares. So they need to pay her more, but how much more would be fair is unclear, and then other shareholders could and probably will sue.

    I was going to write “minority shareholders” but it’s unclear what the minority even is. They made things complicated enough that it depends on your definition.

    5 votes