(Reuters) -A special committee of Paramount Global’s board agreed to recommend a deal with Skydance Media, the Wall Street Journal reported on Friday, citing people familiar with the matter.
A potential deal could end months of speculation over the media giant’s fate. Reports on a takeover offer from Skydance Media and a consortium of Apollo Global Management and Sony Pictures, and another $30 billion bid from media entrepreneur Byron Allen have left the stock see-sawing for months.
An exodus of advertisers and cord-cutting have hammered Paramount’s traditional TV business, which accounts for more than half of its revenue.
Media mogul Shari Redstone has received expressions of interest from at least two parties in buying all or part of her company National Amusements, which holds 77% of Paramount’s Class A voting stock, the report said.
Hollywood producer Steven Paul, who is the chief executive of film studio Crystal Sky Pictures, has been lining up financing to make an offer for National Amusements of around $3 billion, the report added.
A spokesman for the special committee declined to comment and Crystal Sky Pictures did not immediately respond to a Reuters request for comment.
Paramount’s exclusive negotiations with Skydance had lapsed early in May, Reuters had reported, citing person familiar with the matter, allowing the company to evaluate rival bids.
Skydance Media has submitted a sweetened offer for its proposed merger with Paramount, a person familiar with the matter told Reuters on Thursday.
The new deal is said to offer improved terms for both voting and non-voting Paramount shareholders, and provides more cash, according to the source.
Redstone is yet to see the terms of the latest Skydance offer, the WSJ report said.
Analysts have said that investors might be disappointed by the initial deal terms that would see a buyout of Redstone’s majority stake by Skydance but would leave Paramount as a public company.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur, Shinjini Ganguli and Maju Samuel)
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