US Paramount's Merger with Skydance Falls Through... Stock Price Plummets 8%

The merger between the major U.S. media company Paramount Global and Hollywood production company Skydance was ultimately blocked due to opposition from Paramount's board of directors. Paramount's stock price plummeted nearly 8%.

[Image source=Reuters Yonhap News]

The Wall Street Journal (WSJ) reported on the 11th (local time) that merger talks between the two companies have ended. Earlier, Skydance proposed acquiring a stake in Paramount's controlling shareholder, National Amusements, for about $1.7 billion (approximately 2.346 trillion KRW) in cash, and merging Paramount into Skydance through a stock transaction.

However, the Redstone family, including Chairman Shari Redstone who holds a 77% stake in Paramount through National Amusements, reportedly expressed dissatisfaction with the acquisition proposal. A source explained that Chairman Redstone rejected the merger before the vote that afternoon.

WSJ commented, "Chairman Redstone is not yet ready to exit the entertainment business," calling it "a surprising reversal considering the months of advocacy for an agreement with Skydance." Previously, disagreements related to the Skydance merger were cited as reasons behind the dismissal of former CEO Bob Bakish.

Shari Redstone, Chairperson of National Amusements
[Photo by Reuters Yonhap News]

In particular, with the collapse of this merger plan, there is speculation that Chairman Redstone may pursue selling National Amusements alone rather than the entire Paramount. Neither Paramount nor Skydance has issued an official statement.

Paramount is a massive media group owning film studio Paramount Pictures, CBS Broadcasting, MTV, Nickelodeon, Showtime, and more. WSJ noted, "Paramount, famous for films like Titanic, Indiana Jones, and The Godfather, faces various challenges across its business. Its TV business, which generates most of its revenue, has shrunk, streaming investments are costly, and more people prefer watching movies at home rather than in theaters." It added, "Chairman Redstone hoped for a large acquirer like a major tech company to emerge, but that did not happen."

On the New York Stock Exchange that day, Paramount's stock closed the regular session at $11.04 per share, down 7.85% from the previous close. It was also down over 1% in after-hours trading.

This content was produced with the assistance of AI translation services.