The main gate to Paramount Studios is seen on Melrose Avenue, July 8, 2015, in Los Angeles. National Amusements, which owns a majority voting stake in the embattled entertainment giant Paramount Global, said Tuesday, June 11, 2024, that it has ended talks on a possible Paramount merger with Skydance Media. (AP Photo/Nick Ut, File)
NEW YORK (AP) — National Amusements, the majority voting stakeholder in Paramount Global, announced Tuesday that it has terminated merger discussions with Skydance Media.
The potential merger had been a topic of interest for weeks due to concerns about Paramount’s substantial debt and struggling television business. Earlier in June, a media report suggested that Paramount and Skydance had reached an agreement pending approval from Paramount’s controlling shareholder, Shari Redstone. However, National Amusements stated that the parties “have not been able to reach mutually acceptable terms.”
Skydance, based in Santa Monica, California, has been instrumental in producing several major Paramount films, including “Top Gun: Maverick” and multiple “Mission Impossible” movies. Skydance’s founder and CEO, David Ellison, is the son of Oracle founder Larry Ellison.
Analyst Robert Fishman from MoffettNathanson commented that the collapse of the merger leaves Paramount facing the same challenges without new solutions or financial support. He noted that Shari Redstone might now choose to maintain the current operations or possibly sell her stake in National Amusements, effectively transferring control of her family's media empire without pursuing complex deals involving other media entities or shareholders.
Paramount has faced difficulties adapting to the changing media environment, especially with the decline of its traditional cable business. In an effort to attract the growing streaming audience, Paramount launched Paramount+ in 2021, but the company has continued to struggle with financial losses and accumulating debt.
Following the news, shares of New York-based Paramount Global fell nearly 8% on Tuesday.
