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Special committee of Paramount Global endorses plan to merge with Skydance Media, source says
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Special committee of Paramount Global endorses plan to merge with Skydance Media, source says
Jul 7, 2024 3:03 PM

July 7 (Reuters) - Tech scion David Ellison moved one

step closer to gaining control of Paramount Global ( PARAA ),

with a special committee voting Sunday to support a merger with

his Skydance Media, a source close to the deal told Reuters.

The proposed deal would require approval of Paramount's full

board, including its non-executive chair, Shari Redstone, who

last week reached a preliminary agreement to sell the family's

controlling stake in Paramount to Ellison and his deal partners.

A final agreement could be announced as soon as Monday.

The proposed merger would combine Paramount, with its

namesake film studio and its CBS, MTV and Nickelodeon television

networks, with its financial partner on several major film

releases, including "Top Gun: Maverick," "Mission: Impossible

-Dead Reckoning" and "Star Trek Into Darkness."

The deal comes weeks after Redstone abruptly called off

negotiations with Skydance on June 11.

Behind the scenes, Ellison reached out to Redstone about a

week later and talks quietly resumed, according to two people

familiar with the negotiations.

Skydance sweetened its offer for the family's holding

company, National Amusements, which controls 77% of Paramount's

voting shares. The new offer would net the Redstone family $1.75

billion, said one of the sources. It also enhanced legal

protections from possible shareholder lawsuits, the source said.

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