The Paramount merger saga finally appears to be drawing to a close with Skydance Media ultimately winning out. Per The Wall Street Journal, Shari Redstone‘s National Amusements, the parent company of Paramount Global, has reached a preliminary agreement with David Ellison‘s banner to merge following a payment of $1.75 billion acquisition payment from Skydance. The deal will now be reviewed by the Paramount board’s special committee before being finalized, though a 45-day go-shop provision built into the agreement will allow other bidders to potentially jump in and offer a better deal.

This deal marks the latest twist in Redstone‘s attempts to sell, which became especially notable back in December when Paramount was initially in talks with Warner Bros. Discovery and David Zaslav regarding a potential merger. Skydance eventually emerged as a contender to snap up the entertainment giant, but talks fell through around mid-June in a shock to many in the industry at the time. While financials were never an issue regarding the two-step plan with Ellison, other hang-ups, like National Amusements’ insistence on a consent vote from all shareholders, were a bridge too far for Skydance in the end. However, this new deal appears to solve those problems, paving the way for the media company to now own a controlling share of Paramount Global once all is said and done.

Paramount stocks have already shot up 8.6% in the wake of the news. It’s exactly what Redstone and the company have been looking for, as previous reports have made clear her dire interest in selling her NAI shares. Moreover, Paramount has been staring down the barrel of massive layoffs this year. However, this bidding war could only continue to heat up as the go-shop provision leaves the door cracked open for other parties that have expressed interest throughout this period. IAC chairman Barry Diller is reportedly eyeing a bid, while other prospective buyers like Sony Pictures and Apollo Global Management, and Allen Media Group founder Byron Allen could enter the fray once again. In the meantime, Paramount will continue to be run by co-CEOs Brian Robbins, George Cheeks, and Chris McCarthy.

Paramount and Skydance Make Perfect Sense as Partners

Hollywood mergers are messy, and it can take time for an agreeable deal to finally materialize, such as with 20th Century Studios and Disney. Ultimately, though, a union between Skydance and Paramount made the most sense given their existing relationship. Since inking their first deal to co-finance and co-produce projects with the company in 2009, Skydance has remained a steady partner, working on franchises including Terminator, Transformers, Mission: Impossible, Star Trek, Jack Ryan, and much more. Most recently, their fingerprints were on 2023’s Mission: Impossible – Dead Reckoning Part One and Transformers: Rise of the Beasts. The merger will only deepen their relationship as Paramount enters a pivotal stretch, with big titles including Ridley Scott‘s Gladiator II and the animated Transformers One on the horizon.

There is still much to unpack regarding Paramount. The company has been in talks about a partnership between Paramount+ and WBD‘s Max streamer and there have been rumors that Paramount Global‘s BET Network has been eyed for a potential sale. Stay tuned here at Collider for more on what’s next for the company and for Skydance following the merger.

via Collider