The future of Paramount Pictures is set to change as the company prepares to merge with Skydance Media. The deal, pending final approval from Shari Redstone, the head of National Amusements, includes a $2 billion payment to National Amusements and Skydance's acquisition of nearly half of Paramount's Class B shares for $4.5 billion. Shareholders will receive equity in the newly formed entity. The merger is seen as a strategic move to navigate the uncertainties in the media landscape, including the decline of traditional cable TV and the streaming market. Other potential players, such as Warner Bros. Discovery and a joint bid by Sony and Apollo Global Management, were considered but did not materialize. The merger aims to position Paramount and Skydance as stronger players in the entertainment industry [9dabea86].
In addition to the merger, Sony Pictures Entertainment and Apollo Global Management have signed nondisclosure agreements to explore the possibility of acquiring Paramount's assets. The companies have shifted their initial plan of an all-cash $26 billion offer and are now considering various approaches to acquire Paramount's assets. Paramount has faced challenges in recent times, including strikes by Hollywood writers and actors, a soft advertising market, and falling cable subscriptions in the United States [53794d8c].
The upcoming Milken Institute Conference in Beverly Hills will feature a panel on creativity in the entertainment industry. The panel will include industry figures such as Justin Baldoni, Brian Grazer, Lisa Joy, Jeffrey Katzenberg, Ynon Kreiz, and Janine Sherman Barrois [7aea873d].
Paramount Global's special committee is evaluating different sale options, including a proposal from Sony Group and Apollo Global Management. The offer, valued at $26 billion, is an all-cash deal for Paramount shares and the assumption of debt. Paramount has also been considering a merger proposal from David Ellison, the head of Skydance Media. However, other Paramount investors have criticized Ellison's proposal, leading Paramount to explore alternative bids [7aea873d] [90e1e206].
The summer box office faces uncertainty, with non-franchise films dominating the first few weekends. Movies like 'Snake Eyes' and 'Clifford the Big Red Dog' are expected to make an impact. However, the overall performance of the box office remains uncertain [7aea873d].
Other stories making waves in the industry include David Zaslav's NBA rights deal, MAGA's Israel stance, and the Ellison-RedBird bid for Paramount [7aea873d].
Skydance Media has revised its offer to buy non-voting Paramount shares at $15 each, a 26% premium to Friday's close. Paramount's special committee has agreed to recommend the deal. Skydance has been negotiating with Paramount for months, while a rival bidder, Pictures Entertainment, in partnership with Apollo Global Management, submitted a non-binding all-cash offer of $26 billion but has since backed away. Paramount and Skydance have not commented on the report [c4d0c49b].
The website-building platform Squarespace will go private in a $6.9 billion all-cash takeover deal with private equity firm Permira. The news caused Squarespace's stock to rise by 13% [df38ac98].
Skydance Media, known for its films such as 'Top Gun: Maverick' and 'Mission: Impossible - Fallout', has hired Jean Chi as president of global business and legal affairs. Chi, the former global head of business affairs for content at Spotify, will oversee the legal and business aspects of Skydance's operations. The hiring of Chi comes as Skydance is shaking up Hollywood with its merger with Paramount [24fc030f].
Equativ, a global independent ad tech company, has announced its merger with Sharethrough, one of the top independent omnichannel ad exchanges. The merger aims to establish one of the largest ad marketplaces globally, providing advertisers, media owners, and technology partners with programmatic value and scale. The unified entity will have over 720 employees, operate in 18 countries, and generate a combined net recurring revenue above USD$200m (£156.5m). Equativ and Sharethrough achieved 16% and 20% growth year-over-year in Q1 2024, respectively. The merger will offer advanced video & CTV strategies, maximize user attention & performance, deliver efficient and transparent transactions, and expand addressability solutions. The merger is seen as a significant milestone for Equativ and will position the company among the top three independent SSPs worldwide. The merger is supported by Bridgepoint Development Capital [d9493806].