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Paramount-Skydance takeover deal off after NAI’s Shari Redstone pulls plug

Skydance Media’s months-long pursuit of Paramount Global has reached a dead end after Shari Redstone reportedly pulled the plug on the potential deal.

Shari Redstone

Redstone, who is the controlling shareholder in Paramount Global via its parent company National Amusements Inc (NAI), is walking away from the deal after Paramount’s independent board committee had agreed terms with Skydance last week. The Wall Street Journal (WSJ) was first to report the news.

According to the WSJ’s report, Redstone is now only pursuing a sale of NAI, the US-based theatre chain operator, and does not currently have plans to merge Paramount Global with another business.

NAI said in a statement it had “not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.”

It added that it “supports the recently announced strategic plan being executed by Paramount’s office of the CEO as well as their ongoing work and that of the company’s board of directors to continue to explore opportunities to drive value creation for all Paramount shareholders.”

Paramount Global shares fell by nearly 8% to US$11.04 per share following the WSJ report.

After former CEO Bob Bakish was fired in late April, a three-man co-CEO structure was implemented, with George Cheeks, Chris McCarthy and Brian Robbins leading the company.

The co-CEOs were front and centre at the company’s virtual annual shareholder meeting https://www.c21media.net/news/paramount-co-ceos-outline-long-term-vision-amid-rumours-of-imminent-sale/ last week, outlining a three-pronged strategy that involves “transforming” its streaming business, finding at least US$500m in annual savings and divesting several assets to reduce debt.

Redstone’s decision to end talks with Skydance means the cloud of uncertainty that has surrounded the company since last fall will remain.

Company downsizing continued this week with news that Paramount International’s UK-based kids execs Chris Rose and Adam Bailey had been let go, with Jordan Elson set to leave at the end of the summer.

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