Paramount Global And Skydance Media Ink $28B Merger, Forming New Entity (UPDATED) - Paramount Global (NAS

　　Editors Note: The story has been updated with the latest details on M&A activity. The previous version was based on source-based information suggesting that the Paramount board had endorsed a merger with Skydance Media as David Ellison nears the acquisition of the owner of MTV and CBS.

　　Paramount GlobalPARA and Skydance Mediahave inked a definitive agreement to create a new entity, “New Paramount,” in a $28 billion merger deal.

　　What Happened: The merger, announced on Sunday, will see the formation of a “next-generation media and technology leader,” according to a press release from Skydance Media. The deal involves the acquisition of National Amusements, Inc., which holds the controlling stake in Paramount, and a subsequent merger of Skydance and Paramount Global.

　　The transaction, if finalized, would mark the end of a tumultuous and complex merger process. The deal includes the acquisition of National Amusements, the controlling shareholder of Paramount, by Ellison, followed by the merger of Skydance with Paramount. This move would bring an end to the Redstone familys four-decade-long control of the media empire.

　　The transaction will combine the financial resources and technological expertise of the Skydance Investor Group with Paramounts iconic intellectual property, film and television library, and extensive linear and streaming platforms.

　　Under the leadership of David Ellisonas Chairman and CEO and Jeff Shellas President, the new entity aims to enhance profitability, stability, and independence for creators, as well as to facilitate increased investment in growth areas.

　　I am incredibly grateful to Shari Redstone and her family who have agreed to entrust us with the opportunity to lead Paramount. We are committed to energizing the business and bolstering Paramount with contemporary technology, new leadership and a creative discipline that aims to enrich generations to come, Ellison said.

　　Shari Redstone, Chair of Paramount Global and CEO of National Amusements, Inc., expressed her confidence in the deal, stating that it will fortify Paramount for the future and maintain content as a priority.

　　Why It Matters: The merger between Skydance Media and Paramount Global has been in the works for some time. A special committee of Paramount's board approved the merger, according to Bloomberg. This approval marked a significant step towards finalizing the deal, which involves acquiring National Amusements, the controlling shareholder of Paramount.

　　The news of the potential acquisition has had a significant impact on the stock market. Paramount Global‘s stock surged following reports of the preliminary agreement to acquire National Amusements Inc. and merge with Paramount. This deal, involving substantial financial maneuvering, aims to strengthen Paramount’s position in the competitive media landscape.

　　Price Action: Paramount Global Class B shares last closed at $11.81, rising by 3.05%. In after-hours trading, the stock slightly increased 0.17%. Year to date, the stock has declined by 17.99%, according to data from Benzinga Pro.

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　　This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

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