The $8 billion agreement between Paramount and Skydance has been accepted

After months of rumours about the merger, the firm announced late on Sunday that its board had unanimously accepted a purchase bid from Skydance Media, creating a new direction for the studio.

Class B shareholders of Paramount will get $15 per share, while class A shareholders will receive $23 per share in cash or shares. The deal's total estimated value is approximately $8 billion, of which $4.5 billion will be paid in cash to public stockholders.

The Ellison Family and Redbird Capital will invest $4.2 billion in Paramount as part of the entire agreement, and the merged company, New Paramount, will receive $1.5 billion in main capital.

Following the transaction, Skydance will hold around 70% of New Paramount's outstanding shares. As part of the agreement, Skydance would purchase the bulk of National Amusements' Paramount stock. Skydance will also have access to Paramount's studio assets, Paramount+ streaming service, and networks including Comedy Central, Nickelodeon, and MTV.

Chair of Paramount Global Shari Redstone stated, "We hope that the Skydance transaction will enable Paramount's continued success in this rapidly changing environment."

Over the weekend, the merger was authorised by the special committee of Paramount's board, which was established earlier this year to monitor the deal.

Former NBC Universal CEO Jeff Shell will serve as president, and Skydance founder and CEO David Ellison will serve as chairman.

(Sources: investing.com, reuters.com)