Los Angeles, CA – The recent turbulence at Paramount Global has caught the attention of investors and industry insiders as the company navigates through a potential merger with Skydance Media. The removal of Bob Bakish as CEO has spurred speculation about the future direction of the company and the impact it will have on the proposed deal.

Several prominent shareholders, including Gamco Investors, Ariel Investments, Matrix, and Aspen Sky Trust, have openly criticized the merger with Skydance, citing concerns about the dilution of common shareholders’ value due to the influx of billions of dollars in new equity. The contentious nature of the deal has generated significant debate within Paramount, with Bakish and others voicing their opposition to what they perceive as a transaction benefiting controlling shareholder Shari Redstone at the expense of common shareholders.

Redstone’s willingness to entertain a “majority of the minority” vote on the Skydance deal marks a significant shift in negotiations, giving minority shareholders a say in the outcome and potentially influencing the final decision. As Paramount Global shares experienced a 5% increase in premarket trading following the news, the prospect of a shareholder vote introduces a new level of uncertainty to the deal.

The impending end to exclusivity talks with Skydance on May 3 adds another layer of complexity to the situation, with reports indicating that Skydance is seeking an extension to finalize valuation terms. With the possibility of a joint bid from private equity firm Apollo Global and Sony on the horizon, the dynamics of the deal could undergo further changes, prompting shareholders to closely monitor developments.

The outcome of the negotiations with Skydance and the potential involvement of Apollo Global and Sony could have significant implications for Paramount’s future. As the company faces a crucial carriage renewal deal with U.S. cable giant Charter Communications, the departure of Bakish and the uncertainty surrounding the merger could impact the negotiations and the company’s valuation moving forward. Investors and industry analysts will be closely watching to see how the situation unfolds and what it means for the future of Paramount Global.