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Paramount Global Inc.’s stock soared 13% Friday on a report that David Ellison, chief executive of diversified media company Skydance, and investment group RedBird Capital are eyeing taking control of the company.
According to online entertainment news site Deadline, the parties are looking at a deal involving National Amusements, the Norwood, Mass.-based exhibitor that owns 77% of Paramount’s Class A shares, which carry voting rights.
RedBird and Skydance did not respond to requests for comment from Deadline, while Paramount
PARA,
declined to comment.
Ellison is the son of Oracle
ORCL,
co-Founder and billionaire Larry Ellison. Deadline wrote that Skydance and RedBird are unlikely to want to run Paramount’s cable networks or KCBS-TV, but gaining access to IP and Paramount Pictures would make sense.
National Amusements was founded by Michael Redstone, father of Sumner Redstone, who was CEO and president until his death in August 2020. Redstone’s daughter, Shari, is now president of National Amusements and was behind the push to merge CBS and Viacom to create the current Paramount Global.
Shari is reportedly open to a merger or a sale of the company at the right price, although high interest rates have made the deal environment more challenging. The company has been struggling of late, especially in its streaming business. Traditional broadcast and cable TV businesses are also in decline while advertising in its TV division fell 14% in the third quarter from the year-earlier period.
Read now:Paramount’s stock is down 40% since early May, and BofA says it has further to fall
Paramount’s stock move has pushed it into the black for the year, up 1.2%, while the S&P 500
SPX
has gained 19%.
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