The Paramount Acquisition: Why should we care?
By your co-Editors-in-Chief:
Natalie Lifson (Executive Assistant & Agent Trainee at Buchwald)
& Lucy Stover (Executive Assistant, More/Medavoy Management)
Image from Edge Media
On July 11th, Paramount Global announced that they will be acquired by Skydance, with a caveat: If Paramount’s owner, National Amusements, gets a better offer before August 21st, they can pay Skydance a $400 million fee to break the contract and accept the other offer instead.
This is just one of a number of mergers we’ve been tracking and, to the average bystander, it looks like a whole bunch of corporate mumbo jumbo. So why should we, as wee assistants, care about what the big wigs are up to? Ok, enough with the pet names.
Obviously, if you work at either of these companies, you’re likely on alert for the unfortunate, but inevitable layoffs. You could potentially lose your current position, or come out on top in a higher level position. Unfortunately, you likely have no control whether you have a winning or losing hand.
If you don’t work at either of these companies, it’s still key to recognize market consolidation and new leadership at the helm of one of the industry’s top grossing companies. If David Ellison is to move into power, we’ll see the reign of a much younger CEO– if you count 41 as “much younger.” He is also known to be rather hands-on in creative processes at Skydance, which could pose for some very different leadership tactics at Paramount.
All we’re saying is it could set a new precedent of what leadership looks like in Hollywood, which is incredibly exciting!
See below for a timeline of the events leading up to Skydance’s acquisition of Paramount:
January 19: Paramount Stock Climbs On Report That Private Equity Firm Apollo Is Mulling A Bid For National Amusements (the family holding company that controls Paramount Global) -Deadline
January 24: Skydance Media CEO David Ellison Makes Offer For Control Of Paramount Global -Deadline
David Ellison’s Skydance is said to have made a preliminary offer to buy Shari Redstone’s stake in National Amusements, according to a Bloomberg report.
January 30: Byron Allen Makes $30 Billion Bid For Paramount Global In Debt & Equity -Deadline
March 13: Paramount Global Sells Stake in Viacom18 for $517M -THR
April 11: As Paramount Shareholders Slam A Skydance Deal, Directors Said To Be Exiting Board: Could Threat Of Legal Action Derail Talks? -Deadline
April 18: Sony In Talks To Team With Apollo In Bid For Paramount Global -Deadline
April 25: Skydance Still In Pole Position For Paramount As Two Hash Out Terms; Sony & Apollo Waiting In The Wings -Deadline
April 29: Skydance Best And Final Offer For Paramount: Bigger Cash Infusion, Less For Shari Redstone, More For Other Shareholders -Deadline
May 3: Sony Pictures and Apollo Global Management have made a formal $26 billion all-cash offer to buy Paramount Global. The offer comes on the heels of Paramount CEO Bob Bakish stepping down Monday and the pending expiration of an exclusive negotiating period between Paramount and Skydance Media. -Cynopsis
May 5: Paramount Global to Pursue Simultaneous Talks with Sony/Apollo and Skydance -Variety, 5/5
June 6: Paramount’s Shari Redstone Juggling Skydance, Other Suitors As Deal Saga Continues -Deadline
June 11: Shari Redstone, Paramount End Merger Talks With Skydance As Two Sides Unable “To Reach Mutually Acceptable Terms” -Deadline
June 25: Paramount Global Co-CEOs Have Hired Bankers to Evaluate Asset Sales, Tell Employees They’ve Identified Areas for Job Cuts -Variety
July 2:
July 7: It’s Official: Skydance Wins the Battle for Paramount Global in $8 Billion Deal -THR
The Skydance Vision for a New Paramount: Cash Injection, ‘Stability’ for Creatives and Tech Savvy -Variety
July 8:
Jeff Shell and David Ellison Dish on Paramount Plans: It’ll Be “Creator-Friendly Again” -THR
Paramount President-To-Be Jeff Shell Says Linear TV Will Remain “A Strong Business For Decades To Come” -Deadline
Skydance Targets $2 Billion-Plus in Cuts After Paramount Merger -Variety
David Ellison and Jeff Shell Say Paramount Can Be “Winner” in Streaming, Plan $2B in Cost Savings -THR
Skydance Team Would “Be Supportive Of” Paramount Selling Off Some Assets -THR
July 9: Ratings Agencies Call Skydance, Paramount Merger Positive But See Risks In Long Lead Time, Linear TV Declines -Deadline
July 10: Paramount’s Merger With Skydance to Test DOJ’s Tolerance for Big Media Consolidation -THR
July 11: Paramount Has Until Aug. 21 to Mull Other Takeover Bids During “Go-Shop” Window -THR
“The go-shop period allows a 45-day window for the special committee of Paramount’s Board of Directors to evaluate or seek out better offers. However, if Paramount does not choose to go with the Skydance offer, it will be forced to pay a $400 million breakup fee.”
July 30: Edgar Bronfman Jr. Still Mulling Bid For Paramount Control During Skydance “Go-Shop” Period -Deadline
July 31: Now believed to be a hoax, news outlets report that Apex Capital Trust submitted a $43 billion bid for Paramount Global, including payment of $400 million breakup fee to Skydance. -Variety
Helpful Articles
What Now for Paramount? How Things Will (or Won’t) Likely Change. -THR, 7/9
Paramount-Skydance Merger: 5 Burning Questions About the Deal -Variety, 7/9
What Went Wrong: Inside Paramount’s Failed Merger Talks and the Battle to Salvage the Company -Variety, 6/19
Paramount’s Future: Is Skydance Deal “Path of Least Resistance” or Will It Get Derailed? -THR, 4/11
“The Vultures Are Circling: Who Will Walk Away With Paramount?” -THR, 1/4
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