National Amusements tentatively agrees Paramount deal - reports

3rd Jul 2024 12:23

(Sharecast News) - Shares in Paramount Global surged on Wednesday, on reports National Amusements has struck a tentative deal to sell its controlling stake in the US entertainment giant.

According to Reuters, citing three unnamed sources, independent production studio Skydance Media will pay $1.75bn for Shari Redstone's National Amusements. The cinema operator controls 77% of the voting shares in Paramount,

As at 1315 BST, Paramount had put on 15% in pre-market trading.

National Amusements has now referred the potential deal to a special committee of Paramount's board for review, Reuters noted.

Another report from the Wall Street Journal said the deal also included a 45-day "go shop" period, in which other bidders could submit offers.

Other names who have expressed an interest in National Amusements include New York media mogul and IAC Group chair Barry Diller, film producer Steven Paul and former Warner Music Group chief executive Edgar Bronfman.

Merger talks between Paramount and Skydance fell apart last month. But Skydance head David Ellison - son of Oracle founder Larry - brought Redstone back to the table.

Redstone's father is the late billionaire Sumner Redstone.