Film producer David Ellison is in talks to take the reins of Paramount Global, as part of a $2 billion deal with National Amusements, led by Shari Redstone, who owns a majority of Paramount's voting rights. At the heart of these negotiations, Ellison, through his company Skydance and with the support of KKR and Redbird, aims to acquire a significant position within Paramount. Paramount's special committee has given the go-ahead for these exclusive talks, opening a 30-day window to complete the deal.


Under the terms of the deal, Ellison would buy out Shary Redstone and merge Skydance with Paramount via a share swap. However, Paramount's governance structure, characterised by a split into two classes of shares, complicates the situation. Class A, controlled almost entirely by Redstone and National Amusements, held 80% of the voting rights but only 10% of the outstanding shares, leaving Class B holders with no voting rights.

Criticism is emerging, with some shareholders expressing dissatisfaction with the proposed deal, describing it as dilutive and unfair. At the same time, Apollo has launched a competing $26 billion bid for the total acquisition of Paramount, following the downgrading of the company's credit rating. Paramount remains sceptical about Apollo's ability to finance such a deal, although the company claims it can restructure existing debt without raising new funds.

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