Paramount Reportedly Set to be Acquired By Skydance

Mass media conglomerate Paramount is set to be acquired by David Ellison’s Skydance Media, reported CNBC’s David Faber on Monday morning.

Shari Redstone, who is Paramount’s controlling shareholder, has been in talks for months about possibly selling the storied movie studio, its various television networks and its branded streamer. NBC’s Lillian Rizzo reported on Monday as well that Redstone had yet to sign off on the deal with Skydance, which is backed by private equity firms KKR and RedBird Capital – the fund run by former CNN CEO Jeff Zucker.

Faber reported on some of the potential details of the deal, which included Redstone’s National Amusements (the parent company through which she owns her controlling interest in Paramount) to receive some $2 billion. “Skydance will buy out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion, which will leave the holders with equity in the new company,” noted Rizzo of the deal, adding:

Following the close of the deal, Skydance and RedBird will own two-thirds of Paramount, and the class B shareholders will own the remaining third of the company, Faber reported. The negotiated terms were earlier reported by The Wall Street Journal.

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In total, the deal is valued at $8 billion, an increase from what was initially on the table. Earlier, the offer from Skydance was valued at about $5 billion. Under those earlier terms, Redstone would have received less than $2 billion for her stake, and the class B shareholders would have been bought out at a nearly 30% premium at $11 a share, CNBC previously reported.

This is a developing story and has been updated.