Paramount, Skydance Reportedly In Merger Discussions

As media companies scramble to reduce costs and increase profitability, a new potential suitor has emerged with interest in buying Paramount Global PARAPARAA parent-company National Amusements.

What Happened: According to a report from the Wall Street Journal, Skydance Media CEO David Ellison and other Skydance investors are discussing an all-cash bid for a majority stake in Paramount’s parent company, National Amusements. The two-part deal would also include the merger of Paramount Global with Skydance, which is key to Skydance investors according to sources.

The report states the deal is still in the very early stages and could fall apart. Paramount has a dual-class share structure, and the large amount of capital needed to complete the deal would make it complicated to execute.

Paramount and Skydance have partnered several times including on "Top Gun: Maverick," the "Mission: Impossible" franchise and the series "Reacher" and "Jack Ryan."

Related News: Netflix, Disney And Other Streaming Services To Make A Big Push To Court Advertisers At CES: Report

Warner Bros. Discovery Inc WBD also expressed interest in a possible merger with Paramount, and CEO David Zaslav met with Paramount CEO Bob Bakish in December, though the discussions have not advanced.

PARA Price Action: According to data from Benzinga Pro, Paramount Global shares closed the session 0.77% lower at $14.12.

Photo: Shutterstock