The media Film producer wins takeover battle for Paramount
Reports of a possible takeover battle for the Hollywood veteran Paramount have kept the industry on tenterhooks - but it won't come to that after all. Billionaire film producer David Ellison has won the bid, as the media group announced on Monday.
27.08.2024, 08:53
SDA
Media manager Edgar Bronfman Jr. had withdrawn his counter-offer. The deal with Ellison's production company Skydance is expected to be completed in the first half of 2025.
According to media reports, Bronfman submitted an offer for Paramount last week that was most recently worth around six billion dollars. Ellison and his partners are investing more than eight billion dollars in the takeover.
At first glance, Paramount's share structure makes it easy to gain control of the group. More than three quarters of the shares with voting rights belonged to the previous owner Shari Redstone.
In theory, it would have been enough just to take over her stake. But then the many owners of non-voting shares would have been threatened with legal action if they felt disadvantaged.
Complex deal
That is why there is a complex deal: Redstone is to receive 2.4 billion dollars for its shares. At the same time, Paramount will merge with Ellison's Skydance Media.
In addition, Ellison, his family and participating investors will raise a further 4.5 billion dollars to buy the shares of non-voting shareholders. Finally, they will pay another 1.5 billion dollars to reduce Paramount's debt.
The 41-year-old Ellison is to become the new Paramount CEO after the deal is completed. His father is Larry Ellison, the billionaire founder of the software company Oracle. Bronfman is part of the family behind the spirits company Seagram and was, among other things, head of the Warner Music Group.
