Paramount receives new offer at 75% premium

Posted: Jan 24, 2025

  • Paramount Pictures received a $13.5 billion offer from Rise Partners for a part of its business.
  • Rise Partners is looking to acquire a minority interest in Skydance Media.
  • This investment could potentially improve both Paramount Pictures and Skydance Media's financial situations.
  • Paramount is facing a last-minute $13.5 billion offer from outside investors, higher than the $8 billion offer from Skydance and RedBird Capital Partners
  • The new bid from Project Rise Partners includes a $19 per share offer for B shares, higher than the $15 per share in the Skydance offer
  • Project Rise Partners' investors include Daphna Edwards Ziman and Moses Gross, and boast credible financing
  • The offer includes restructuring of debt and proposes to grow Paramount Global's headcount
  • Larry Ellison, facing regulatory hurdles with the Paramount-Skydance merger, has been supported by Trump in an effort to keep the deal on track
  • Politicians have raised concerns about China's role in the Skydance deal
  • The $8 billion deal with Skydance has been controversial among shareholders as it values Skydance at roughly $4 billion
  • The letter highlights the role of Paramount directors in considering superior bids for the company's benefit- Paramount Studios is facing a $13.5 billion offer from outside investors
  • The offer is higher than the $8 billion deal from Skydance and RedBird
  • Project Rise Partners sent a legal letter outlining their bid to Paramount's board
  • Project Rise Partners includes investors like Daphna Edwards Ziman and Moses Gross
  • The bid includes $5 billion for restructuring debt and plans to grow Paramount Global's headcount
  • Larry Ellison and Skydance have faced regulatory challenges in their proposed merger
  • Rep. John Moolenaar has raised concerns about China's involvement in the Skydance deal
  • Paramount may only back out if regulators stop the merger
  • The Project Rise Partners letter criticizes Paramount directors' loyalty to shareholders and their decision to eliminate a fiduciary out
  • Shareholders are questioning the valuation of Skydance at $4 billion and the potential merger with Paramount


What do people on Reddit think?

🚨 Reddit sentiment: mixed/negative - Comments include skepticism regarding Paramount's management and concerns over insider advantages despite hope for better acquisition deals. Summarized comments: - Discussions around differences in value between Class A and Class B shares - Some shareholders expressing confusion and concern over trading prices - Criticism of deal favoring Shari Redstone and strategies regarding voting rights - Skepticism about the deal acceptance and past decisions influenced by Skydance - Some shareholders sold at a loss, expressing relief - Hope from some investors for a more favorable bid from Skydance or others - Mixed expectations about a new investor consortium (Project Rise Partners) outbidding the current offer - Investors holding call options in anticipation of rising stock prices and potential acquisition benefits - Mixed opinions on Paramount's current management and market presence - Speculation on the identity of mysterious backers supporting Project Rise Partners Stock tickers discussed: $PARA



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