Skydance Media revises offer for Paramount Global shares

Skydance Media ups bid for Paramount non-voting shares

Skydance Media has raised its bid to purchase non-voting shares of Paramount Global to $15 per share, according to the Wall Street Journal on Sunday. This latest proposal values Paramount B shares at a 26 per cent premium to their Friday closing price. The updated proposal, which appeared last week, prompted a special committee of Paramount's board to suggest approving the purchase.

Special committee endorses sweetened offer

Skydance filed an amended proposal with better terms for both voting and non-voting shareholders, and Paramount's special committee approved it. According to sources, this sweetened offer includes additional cash incentives and better terms to tempt both types of shareholders. This move is a huge step forward in the current negotiations between Skydance and Paramount.

National Amusements Seeks Legal Protections

National Amusements, Paramount's parent business, has mandated that Skydance give legal protections in the case of any lawsuits resulting from the transaction. The New York Times reported on Sunday about this ailment. Skydance has also agreed to donate at least $1.5 billion to help lower Paramount's debt.

Uncertainty Over 'Go-Shop' Period

Despite the deal's advanced stages, it is unclear whether Paramount will be granted a "go-shop" period to seek possible higher offers from other bidders, or if the deal would be promptly put to shareholders for approval. Skydance and Paramount have yet to finalize this portion of their deal.

Sony and Apollo's Rival Bid Withdrawn

In a twist to the acquisition saga, Sony Pictures Entertainment, in cooperation with Apollo Global Management, had previously made a non-binding all-cash bid of $26 billion for Paramount. However, the competitor's bid was withdrawn in favor of a more limited strategy, paving the way for Skydance's updated proposal.

Paramount and Skydance have both declined to comment on the Wall Street Journal and New York Times claims. Skydance has been in significant talks with Paramount over the last few months, indicating a probable convergence of the media sector.

(With inputs from Reuters)