Paramount Global Stock Surges on Skydance’s Take-Private Deal Plans

LOS ANGELES – Shares of Paramount Global (PARA), a production studio, experienced an 8% surge on Thursday following reports that Skydance Media is interested in taking the company private. The stock ultimately stabilized as investors absorbed the news.

Skydance Media, along with financial backers Redbird Capital and KKR, are reportedly in talks to acquire National Amusements, the holding company that owns Paramount and controls the media conglomerate through its class A shares. Shari Redstone, the non-executive chairwoman of Paramount Global and president of National Amusements, currently holds approximately 10% of Paramount’s equity capital value and maintains 77% of voting shares.

The potential deal, still in its early stages, would involve merging Skydance with Paramount, potentially resulting in the media company’s privatization. There is a possibility that the negotiations could fall through. Besides Skydance, Warner Bros. Discovery has also been touted as a potential buyer. In December, CEOs of both companies reportedly met to discuss a potential merger.

Paramount has become a top choice for a breakup or merger due to its relatively small size compared to competitors like Disney and Netflix. With a market cap of around $9 billion, the studio has struggled to attract consumers who are only willing to pay for a limited number of streaming services.

Concurrently, Paramount announced lay-offs in an internal memo, stating the need for the company to operate more efficiently and reduce costs. The specific number of job cuts and timeline were not disclosed. The memo emphasized the company’s focus on driving streaming profitability and prioritizing content with the greatest impact.

Paramount’s potential privatization and restructuring reflect the rapidly evolving landscape of the media and entertainment industry, as companies seek to adapt to changing consumer preferences and intensifying competition.