Bloomberg's Lucas Shaw is reporting that a special committee of Paramount Global’s board of directors has approved a $1.75 billion merger between Skydance Media and National Amusements, the parent of Paramount Global that owns 77% of the company’s stock and is headed by Shari Redstone, daughter of late company founder Sumner Redstone.
Things could certainly go wrong between now and then, and even after the announcement there will other hurdles to successfully cross. But assuming everything goes to plan, David Ellison will take over the company and reporting has suggested that while he may sell off some Paramount Global assets, he will keep the bulk of the company intact.
In the interim, current Paramount Global will need Skydance's approval to make any large moves with its approval. One move that might be in play is the selling off of BET, which includes the BET+ streaming service as well as VH1.
And then there are other possible impediments:
Any deal will be subject to regulatory approval, a process that will take months at a minimum. But one rich person buying the asset from another rich person is less troubling to politicians than if a rival media company or private equity were the buyer.
Redstone will have 45 days to shop for a better deal. There are still a couple of other bidders circling, including Edgar Bronfman Jr. Redstone has had several months to look for other deals. She has yet to find one she likes more.
The biggest question is what David Ellison will do with Paramount Global once he takes it over. He has said in interviews that he plans of improving the execution of the company, but believes in the underlying business. And it's not clear what moves he can make to markedly improve the company's financial prospects.
