New Skydance offer for Paramount Global with softened conditions

Paramount Studios

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Skydance and RedBird Capital sweeten their deal to buy Paramount Global.

A source confirms The Hollywood Reporter that the investor group, which also includes KKR, made a revised offer to the independent committee of Paramount’s board of directors that is reviewing the transactions.

While details of the new offer were not immediately available, it appears to sweeten the deal for Paramount’s Class B shareholders, many of whom expressed concerns about the initial offer. Paramount is effectively controlled by Shari Redstone and her company National Amusements, which owns more than 70 percent of the Class A voting stock.

Class B shareholders have expressed concern that they would not get the same value from the deal as Redstone, with threats of legal action if the company moves forward with the deal.

The initial deal on the table would see the Skydance-RedBird consortium acquire National Amusements’ stake in Paramount at a premium price (taking into account their voting rights), then allow Paramount to acquire Skydance, which would install its own team of management (led by former NBCUniversal CEO). Jeff Shell) and execute his own strategy.

The consortium is ready to make its pitch to Class B shareholders, if Paramount’s board pursues the deal, a source said.

The upgraded deal also comes as another bidder, a joint pitch from Apollo and Sony, continues to talk with the company. These companies initially made a $26 billion cash offer, although according to reports they have since softened that offer.

And Warner Bros. Discovery will also be interested in Paramount, if the company chooses not to do a deal with Skydance or Sony. WBD CEO David Zaslav said Thursday the company would be “opportunistic” when it comes to making deals.

In preparation for a sale, Paramount on April 29 parted ways with CEO Bob Bakish, who had led the company since the merger of Viacom and CBS in December 2019. In the meantime, a trio of veteran executives under the title of ” Office of the CEO” — Brian Robbins, George Cheeks and Chris McCarthy — lead the business of Paramount and its brands, from Paramount Pictures to Paramount+, Showtime, CBS, MTV, Comedy Central, Nickelodeon and BET, until a new long-term plan be unveiled.

More soon.

Kim Masters contributed reporting.