David Ellison has moved closer to an acquisition of Paramount Globalthe owner of MTV and CBS, as a special committee of the company’s board approved a merger with its Skydance Media company, according to a person familiar with the matter.
A deal would end one of the most complicated and dramatic mergers in recent history. The board is expected to approve the deal and the parties are expected to sign final documents on Sunday, with an announcement expected as early as Monday, said the person, who asked not to be identified because the meeting was confidential.
No final decision has been made and it is possible that the talks could break down. Another person familiar with the matter said the committee was still meeting and had not yet formally voted.
A Skydance-Paramount merger would be just one step in a complicated deal. Ellison plans to acquire National Amusements, the holding company of Shari Redstone, Paramount’s majority shareholder, and then merge Skydance with Paramount. Redstone has given the green light to the deal with Ellison, which would end his family’s four-decade run of a media empire, but must still give final approval.
Ellison’s negotiations with Paramount and Redstone fell apart just weeks ago, shocking the company’s board, employees and shareholders. But Ellison’s son Oracle Corp. co-founder Larry Ellison has maintained contact with Redstone and restarted negotiations in recent days. The new terms include a higher valuation for National Amusements and stricter provisions to indemnify Redstone’s company against litigation that could arise from the deal.
