Paramount Global is currently a corporate battleground as shareholder Shari Redstone prepares to gamble on Paramount's future. This comes after news of the imminent removal of CEO Bob Bakish, coinciding with the quarterly earnings report.
According to CNBC, Redstone is opening the door for a merger with Skydance Media, using the discontent among common shareholders to pave a path forward for the company. In specific, she promised a "majority of the minority" vote in the negotiations, which caused the stock to jump up by about 5%.
With the departure of Bakish looming, the timing of the voting remains uncertain. This uncertainty, coupled with concerns over the potential disarray his departure could cause, adds a layer of intrigue to the corporate battle at Paramount Global. Bakish's current deal with Charter Communications, the outcome of which is expected to significantly impact Paramount's future value, further adds to the suspense.
Merger With Skydance
Across Wall Street's boardrooms, speculation ran rampant about whether Skydance would make its offer more attractive to convince hesitant investors or if another unexpected player would enter the scene and challenge Skydance's bid.
The mention of a joint venture between Apollo Global and Sony could also happen, offering hope to those who aren't sold on Skydance's proposal, especially since VCPost earlier reported that some board members are stepping down due to the possibility of a merger.
As the deadline for crucial decisions draws near, the stakes in this intense battle for control are high. The potential outcomes, such as a merger with Skydance Media or a joint venture between Apollo Global and Sony, could reshape the corporate landscape. The possibility of Skydance Media paying Shari Redstone about $2 billion for her controlling shares in Paramount Global, a sum larger than Redstone's current interest in the company, underscores the magnitude of the situation.
Join the Conversation