Paramount Directors Exit As Skydance Merger Talks Continue: Report

Author: Shivani Kumaresan | April 11, 2024 09:28am

Four Paramount Global (NASDAQ:PARA) directors are set to depart the company as merger talks with Skydance Media proceed.

What Happened: Dawn Ostroff, a former Spotify Technology SA (NYSE:SPOT) executive, Nicole Seligman, an attorney and former president of Sony (NYSE:SONY) Entertainment, Frederick Terrell, a veteran investment banking executive, and Rob Klieger, Redstone's longtime attorney, are expected to step down from the board in the coming weeks, reported the Wall Street Journal.

The departure of these directors coincides with Paramount Global’s sensitive negotiations for a potential merger with Skydance.

Seligman, Ostroff, and Terrell serve on a special committee tasked with securing the best deal for the company.

Redstone and the governance committee sought a leaner board structure, citing efficiency concerns. Some departing directors expressed reservations about the Skydance deal.

Their exit may be disclosed in a Paramount securities filing imminently.

Why It Matters: Skydance Media wants to acquire Redstone's National Amusements — Paramount’s majority shareholder — for $2 billion.

Paramount Global would then acquire Skydance in a deal valued at around $5 billion.

Investor criticism has surfaced regarding the deal’s potential impact on Paramount’s nonvoting shareholders.

Skydance collaborated with Paramount on several major films.

Meanwhile, Apollo Global Management (NYSE:APO) made a competing offer worth $26 billion. Paramount directors sidelined it, citing financing uncertainties.

Price Action: PARA shares are trading lower by 0.48% at $10.5 in premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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