Los Angeles, CA – Skydance is in talks with private equity firms RedBird Capital Partners and KKR & Co to acquire National Amusements, which is owned by Shari Redstone and controls 77% of Paramount’s voting stock. The potential deal would also involve merging Skydance with Paramount, leading to the complete privatization of the media company.
As the media landscape shifts towards streaming, Redstone is considering selling National Amusements. While Paramount Global has been profitable for years, it faces stiff competition from larger streaming platforms such as Netflix, YouTube, Apple, and Amazon. The potential acquisition is not guaranteed, and discussions could ultimately fall through.
The acquisition would require Skydance to acquire Paramount, which has a market capitalization of $8.2 billion and around $15 billion in debt. Funding for the acquisition could potentially come from Skydance’s private equity partners and Oracle’s co-founder Larry Ellison. However, Skydance has not yet pursued outside financing, and the decision to move forward with the deal remains uncertain.
Additionally, Skydance has expressed disinterest in acquiring only National Amusements without taking over all of Paramount. Acquiring only National Amusements would not address Paramount’s challenges as a publicly traded company, including the financial struggles of its Paramount+ streaming service and its declining cable assets.
In light of Skydance’s interest, Warner Bros. Discovery has also engaged in preliminary discussions to acquire Paramount Global. The potential sale to Skydance may be driven by Redstone’s concerns that Warner Bros. Discovery could seek to merge with Comcast’s NBCUniversal instead.
Initial reports of Skydance’s interest in acquiring National Amusements were first made by Puck, while The Wall Street Journal and Bloomberg have also reported on the potential acquisition. Despite these speculations, spokespeople for the companies involved have declined to comment.
The potential acquisition of National Amusements by Skydance represents a significant move in the media and entertainment industry, as companies seek to capitalize on the growing trend of streaming services.
