Paramount Agrees to Merge With Skydance
Posted: Jul 08, 2024
- Paramount has agreed to merge with Skydance - Deal approved by Paramount's board for $1.75 billion - David Ellison of Skydance will become the top power broker at Paramount - Paramount's market capitalization is $8.2 billion, Skydance's valuation is north of $4 billion - Paramount investors can sell nonvoting stock for $15/share, voting stock for $23/share - Deal opposed by some shareholders, potential lawsuits threatened - Paramount+ is losing money, Paramount exploring cost-cutting measures and joint ventures - Jeff Shell may take on a major role at Paramount, ex-CEO of NBCUniversal - David Ellison plans to improve technology and personalize features for streaming services - Skydance plans to cut costs, lay off employees - Mr. Ellison has briefed the board on his plans, considering teaming up with rivals for a combined streaming service.
🚨 Reddit sentiment: mixed/positive - There is a mix of both positive and negative comments, but the overall sentiment leans towards bullish views on Paramount stocks, especially regarding the merger's potential benefits and stock price increase. Summarized comments: - KKR buying up more media may have implications on democracy - Positive outlook for Paramount class B stockholders - Long anticipation for the Paramount-Skydance merger finally coming to fruition - Paramount stock price increased to $12.75 overnight - Discussion on short interest and average days to cover for Paramount - Commentary on the perceived overemphasis on Paramount and Warner Brothers by media outlets - Some users bought Paramount class B stocks in anticipation of the merger at $12.40 with expectations of a buyout at $15/share - Concerns about the risks and duration of holding Paramount stocks in light of the merger - Some users express confidence in holding onto Paramount stocks due to its assets Stock tickers discussed: $PARA
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