A deal to merge Paramount Global and David Ellison's Skydance Media is unlikely to conclude by May 3 — the end of a 30-day exclusivity window — but is moving forward despite pressure from shareholders eager to consider other bids, TheWrap has learned.
According to an individual with knowledge of the negotiations, Skydance's due diligence on Paramount began this week and will not be complete within two weeks. The individual said the process to hammer out details could take up to 60 days, and in that case the window of exclusivity could be extended.
The deal, which would be backed by fresh capital from a consortium of investors including Oracle cofounder Larry Ellison, RedBird Capital Partners and KKR, would see Skydance acquire control of the company through Shari Redstone's National Amusements, which currently owns 77.3% of Paramount Global's Class A (voting) common stock and 5.2% of its Class B common stock.
But shareholders have
threatened to sue Paramount if Redstone fails to consider a competing bid from private equity giant Apollo.
The individual described the deal as a recapitalization of Paramount, in which the media conglomerate would be able to continue as a public company with the goal of eventually trading between $30 to $40 per share.
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