Following the announcement on Sunday (7 July) that Skydance Media and Paramount Global have agreed to merge, Maureen Kerr– head of Arthur D. Little’s Media & Entertainment practice in the UK – has made the following comments: “This was not an easy deal to get over the line. Billionaire investor Mario Gabelli, a significant shareholder in Paramount’s parent company, expressed the need to review the transaction’s structure before deciding. He hinted that Redstone withdrawing initially meant Skydance had to sharpen its pencil and improve the number! Skydance did that. Gabelli found the financials of the new Skydance deal appealing, explaining that after accounting for debt, it would net National Amusements shareholders about $20 per share. Paramount shares rose to $11.81, and Class A shares to $20.47 following the news. However, given that streaming services remaining a drain on cash resources, Paramount+ may still have to enter discussions regarding a Joint Venture with another streaming services entity – likely Warner Bros Discovery – to share the costs of the service.”
Source: Press Release