Reports of a possible buyer rival for American film and television giant Paramount have the industry in suspense, but that is not happening. Billionaire film producer David Ellison has won the contract, the American media group announced on Monday (local time).
Media executive Edgar Bronfman Jr. withdrew his counteroffer. The deal with Ellison’s production company Skydance is expected to close in the first half of 2025.
Ellison took eight billion in his hands
According to media reports, Bronfman last week made a bid for Paramount worth around six billion dollars (5.4 billion euros). Ellison and his partners are spending more than 8 billion dollars on the acquisition.
At first glance, Paramount’s stock structure makes it easy to gain control of the company. More than three-quarters of the voting stock was owned by the previous owner, Shari Redstone. In theory, it would have been enough to simply take their share. But then the many non-voting stockholders would have been threatened with lawsuits if they felt aggrieved.
A billion dollar deal is quite complex
That’s why there’s a complex deal: Redstone is supposed to get $2.4 billion for his shares. At the same time, Paramount is going to merge with Ellison’s Skydance Media. In addition, Ellison, his family, and participating investors will raise another $4.5 billion to buy shares from non-voting owners. Finally, they’ll pay another $1.5 billion to reduce Paramount’s debt.
Ellison, 41, is expected to become Paramount’s new boss after the deal is completed. His father is Larry Ellison, the billionaire founder of software company Oracle. Bronfman is a member of the family behind spirits company Seagram and was head of Warner Music Group, among other things.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
