David Ellison Offers $15/Share for Paramount Global, 26% Above Friday Price, Plus $1.5 Billion Debt Paydown

Jun 4, 2024, 10:12 AM

Film producer David Ellison has made a new offer for Paramount Global, valuing the company's shares at $15 each, which is 26% above the previous Friday's price. This offer includes an option for nonvoting shareholders to cash out a portion of their stock at this price. Additionally, Skydance has agreed to contribute at least $1.5 billion to pay down debt if the deal goes through. However, several sticking points remain, including who would cover legal expenses in the event of shareholder lawsuits, a potential 'go-shop' period, and the requirement of a shareholder vote. Skydance-RedBird is expected to own two-thirds of Paramount post-close, and Redstone is set to receive $2 billion for National Amusements. Paramount's special committee could formally approve the offer as early as Monday. The future of Paramount may be decided in the next couple of days, with controlling shareholder Shari Redstone playing a crucial role.