Investing.com– Paramount Global (NASDAQ:) (NASDAQ:) said on late-Sunday its board had unanimously approved a takeover offer by Skydance Media, ending months of speculation over the deal and opening up a new path for the studio.
Paramount’s class A stockholders will receive $23 per share in cash or stock, while Paramount’s class B shareholders will receive $15 per share. The total cash consideration in the deal for public shareholders will be $4.5 billion, while the overall deal is valued at over $8 billion.
The overall deal will include a $4.2 billion investment in Paramount by a group comprising the Ellison Family and Redbird Capital and $1.5 billion of primary capital for the combined entity, called New Paramount.
Skydance will own roughly 70% of New Paramount’s outstanding shares after the deal. The deal will see Skydance buy National Amusements’ majority stake in Paramount.
“Our hope is that the Skydance transaction will enable Paramount’s continued success in this rapidly changing environment,” Paramount Global chair Shari Redstone said.
A special committee of Paramount’s board, which was created earlier this year to oversee the deal, approved the merger over the weekend.
The new entity will be led by Skydance’s David Ellison as chairman and CEO.
