Media tycoon Shari Redstone is currently in discussions to sell her controlling interest in Paramount parent company National Amusements to media and entertainment company Skydance, according to reports from Puck and the New York Times.
Potential Sale
Deadline's report that Skydance and private-equity firm RedBird Capital were showing interest in National Amusements caused shares of Paramount Global Inc. to rally 13% on Friday. National Amusements currently holds a 77% stake in Paramount.
Talks with Skydance
According to sources, Redstone, daughter of late Paramount CEO Sumner Redstone, has been engaging with Skydance in recent weeks. However, it remains unclear if a deal will be reached between the two parties.
Skydance and RedBird Capital
Led by David Ellison, son of Oracle founder Larry Ellison, Skydance is a highly regarded independent studio in Hollywood. Known for producing Paramount blockbusters like "Mission: Impossible — Dead Reckoning" and "Top Gun: Maverick," Skydance has received financial backing from RedBird.
Potential Shake-Up
If a sale were to take place, it would mark a significant shift for Redstone. Notably, she fought a bitter battle for control of the company in 2016 and later led the initiative to merge CBS Corp. and Viacom, forming the present-day Paramount Global. It has been suggested that Skydance's primary interest lies in Paramount's intellectual property and movie studio, possibly leading to the sale of its TV assets, including CBS.
Impact on Media Industry
Should a deal go through, this could signal a larger industry-wide shake-up, particularly as traditional TV companies face challenges generating profit in the streaming era. Comcast Corp., which owns NBCUniversal, may seek opportunities for expansion, while Warner Bros. Discovery could potentially become a seller. Although Disney CEO Bob Iger briefly mentioned the idea of selling ABC, he quickly retracted that statement.
Market Performance
Over the past month, shares of Paramount Global have seen a significant surge of nearly 40%. However, year to date, their performance has remained relatively stable.
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