The majority owner of Paramount has ended talks with Skydance, delivering a further twist in the takeover saga.
The entertainment industry has been treated to more than 6 months of speculation as talks between Skydance, Paramount and its main shareholder, National Amusements, warmed and cooled.
A takeover by Skydance was seen by many as a natural fit given the two companies already have a strong history of working together, having co-funded and co-produced multiple films since 2009, including the latest chapters in the Mission Impossible, Transformers and Star Trek franchises.
Last week Skydance, owned by David Ellison, tabled what was understood to be its final offer to acquire National Amusements’ 77% shareholding in Paramount, plus the stakes of the firm’s non-voting shareholders.
The offer, which had been repeatedly revised, sparked widespread reports that a sale of the iconic studio, which also owns substantial US and international broadcasting assets as well as the Paramount+ streaming service, was imminent.
However Shari Redstone, owner and President of National Amusements, has now called off the talks.
In a statement, the firm said: “National Amusements, Inc., the majority voting shareholder of Paramount Global, today announced that they have not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.”
In a memo to staff, Ellison said: “Paramount will always hold a special place for me, we had our first slate deal with the studio and continue to co-own several marquee franchises together. I have great respect for the legacy of Paramount, value our ongoing partnership and wish them the best.”