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Paramount Global (NASDAQ:PARA) controlling shareholder Shari Redstone has held talks about the sale of the company’s movie studio and other assets to Skydance, whose holders include RedBird Capital and billionaire Larry Ellison’s family.
Skydance, the production house behind “Top Gun: Maverick,” has emerged as a leading candidate to take over Redstone’s National Amusements, which has a controlling stake in Paramount, according to a Financial Times report on Saturday, which cited people familiar with the matter.
The discussions were at a very early stage and there was no certainty that they might lead to a deal, according to the FT. Other parties were also interested in purchasing some of Paramount’s assets.
Skydance is especially interested in Paramount’s movie studio, though other assets, including TV networks such as CBS and the streaming platform Paramount Plus, could be purchased and sold to other parties.
Paramount (PARA) and Skydance declined to comment to the FT. RedBird didn’t respond to a request for comment.
The FT story seems to confirm a report from Friday that David Ellison’s Skydance Media is “kicking the tires” on Paramount’s assets, Puck News reported. Redstone’s people are also talking to others, and one deal scenario includes Skydance and RedBird Capital buying a majority stake in National Amusements. The Puck News item sent Paramount (PARA) shares soaring 12% on Friday.
Paramount (PARA) last month also implemented a new pay plan for executives covering a change in control of the company.
Paramount (PARA) short interest is 17%.
