Back In Business: Skydance And Shari Redstone Reach Terms On New Merger Proposal For Paramount
Why did Redstone initially withdraw from the Skydance merger?
Redstone initially withdrew from the Skydance merger due to concerns about legal liability and a dispute over whether to hold a vote for both voting and non-voting shareholders. There were also issues with the deal's financial terms, as it paid Redstone significantly more for her preferred shares than other shareholders.
What are the revised terms of the Skydance-NAI merger agreement?
The revised terms of the Skydance-NAI merger agreement include Skydance paying $1.75 billion for National Amusements Inc. (NAI), which controls almost 80% of voting shares in Paramount. The "majority of the minority" vote requirement has been dropped in the current proposal. Additionally, there is a 45-day "go-shop period" during which other interested Paramount bidders can make offers.
What role does the special committee of Paramount's board play?
The special committee of Paramount's board is responsible for evaluating strategic options for the company, including potential mergers and acquisitions. They review and consider offers, negotiate terms, and make recommendations to the board of directors. Their current focus is on the revised merger agreement between Skydance Media and National Amusements Inc., which controls almost 80% of Paramount's voting shares.