Paramount Global shares rose 7.5% to close at $12.80 Monday on the news that a long-awaited merger with Skydance Media moved closer to completion.
The company’s stock has declined markedly in recent years, falling to about one-third of its level in late-2019, when the reunion of CBS and Viacom became official. As various M&A scenarios circulated over the past three months, however, including a now-less-likely transaction involving Sony Pictures Entertainment and private equity giant Apollo, the shares have risen almost 30%. Monday’s spike, on higher-than-average trading volume, showed investor’s continued belief in the near-term upside of an acquisition.
Related Stories Executives Paramount Nears Finish Line With Skydance On Eve Of Shareholder Meeting And Town Hall - Update News Chris Hemsworth In Talks To Star In Paramount's Transformers/G.I. Joe Crossover Movie Skydance has been in talks for months with Shari Redstone’s National Amusements Inc.
, which controls 77% of Paramount’s voting shares but only 10% of its equity. The David Ellison-led suitor appears to have largely satisfied many initial critics who viewed his previous offers as sweetheart deals for Redstone. According to multiple press reports, Skydance’s updated bid would enable Class B (non-voting) shareholders to collect $15 a share as Skydance injects $1.
5 billion into Paramount, enabling it to pay down debt. The framework, which still requires Redstone’s final blessing, would see Skydance pay abou.
