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Skydance Media is close to announcing a deal to acquire Paramount Global (NASDAQ:PARA). Paramount rose 7% in premarket trading.
The deal is awaiting sign off from controlling shareholder Shari Redstone and is expected to come, according to a report from CNBC’s David Faber on Monday, who cited people familiar with the matter. He expects an announcement “very soon,” though he’s not sure if it’s in the next 24 or 48 hours.
Under the proposed deal, Redstone will receive $2 billion for National Amusements, according to Faber. Skydance will tender for 50% of B shares at $15 each. The investors will contribute $1.5 billion in cash to Paramount’s balance sheet. Skydance-RedBird will own two-thirds of Paramount post-close.
Skydance and RedBird’s equity check totals $8 billion, according to Faber.
The latest update comes after media reports late Sunday that Skydance’s latest offer gives an option for a certain number of nonvoting Paramount shares to be purchased for about $15 each.
Apollo Global (APO) and Sony Group (SONY) also made a non-binding offer for Paramount Global (PARA) though reports in recent weeks have indicated that Sony’s interest waned.
