Shari Redstone halted the sale of Paramount Global-parent National Amusements to Skydance Media on Tuesday. A special committee of the media giant’s board was set to vote on a merger proposal.
The media heiress declined a $1.7 billion offer from David Ellison’s independent studio for her family-run business. The offer was for Redstone’s 77% stake.
National Amusements confirmed the deal’s demise, citing an inability to agree on terms with Skydance Media. The negotiation reached an impasse.
NAI expressed gratitude to Skydance for their efforts in pursuing the transaction. They anticipate continued successful collaboration between Paramount and Skydance.
Shares of Paramount plunged nearly 8% shortly after news broke that the deal fell through.
NAI said the company “supports the recently announced strategic plan being executed by Paramount’s Office of the CEO.”
Paramount’s three co-CEOs recently unveiled a plan to slash costs and find a partner for its money-losing streaming service, Paramount+.
According to The Wall Street Journal, Redstone may now consider selling only National Amusements. The report suggested a standalone sale without merging Paramount.
NAI attracted interest from two other suitors. These include an investor consortium led by Hollywood producer Steven Paul and media executive Edgar Bronfman Jr.
The collapse of the Paramount Skydance merger represents a missed opportunity for both companies to capitalize on synergies and leverage their respective strengths.
Additionally, stakeholders are left to assess the fallout from the failed merger and explore alternative paths forward.
Furthermore, the episode serves as a reminder of the unpredictable nature of corporate mergers and acquisitions.
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