Shari Redstone Ends Talks on Paramount Global Deal, Future Uncertain

Shari Redstone Ends Talks on Paramount Global Deal, Future Uncertain

In a surprising turn of events, Shari Redstone has decided to end talks on the latest offer for Paramount Global from the consortium led by Skydance and RedBird Capital. This decision has placed the future of the entertainment company into a fresh period of uncertainty, according to a source confirming to The Hollywood Reporter.

A spokesperson for the Redstone-run National Amusements, which controls Paramount, stated that the company was unable to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.

The statement further added that NAI supports the strategic plan being executed by Paramount’s Office of the CEO and the ongoing work of the Company’s Board of Directors to explore opportunities to drive value creation for all Paramount shareholders.

Paramount Global’s special committee of the board of directors also confirmed that they did not vote on any potential transaction with Skydance Media on Tuesday.

With the Skydance deal now off the table, Shari Redstone is reportedly looking to sell NAI alone to another potential suitor, as reported by The Wall Street Journal. However, the Skydance team had submitted its best and final offer in April and had secured approval from Paramount’s independent board committee.

National Amusements, which controls about 80 percent of Paramount’s voting stock, has faced challenges in recent months, with its streaming business struggling and its credit rating downgraded to “junk” status by S&P Global.

The future of Paramount remains uncertain, with its three co-CEOs eligible for enhanced severance if the company is ultimately sold. For now, it seems the company will lean into its current leadership unless a better deal is able to cross the finish line.