- Movie maker secures victory in Paramount's bidding contest for film production.
Rumors of a possible bidding war for film studio titan Paramount sent waves of uncertainty throughout the industry – but it looks like that won't materialize, after all. Multibillionaire movie producer David Ellison clinched the deal, according to Paramount's announcement on Monday (local time). Media tycoon Edgar Bronfman Jr. has decided to pull out his rival offer. The anticipated deal with Ellison's production company, Skydance, is expected to finalize in the early half of 2025.
Bronfman reportedly submitted a proposal worth approximately $6 billion ($5.372 billion in current value) for Paramount last week. Ellison and his team are planning on investing more than $8 billion for the acquisition.
Initially, seizing control over Paramount might seem straightforward considering its share structure. Over 75% of the voting shares belong to the current owner, Shari Redstone. In theory, securing her stake would have sufficed. However, potential lawsuits from various shareholders holding non-voting shares could have arisen if they felt disadvantaged.
To avoid such legal complications, a sophisticated arrangement has been reached: Redstone will receive $2.4 billion for her shares. Simultaneously, Paramount and Ellison's Skydance Media will merge.
To secure further shares from non-voting shareholders, Ellison, his family, and the accompanying investors will contribute another $4.5 billion. They will also provide $1.5 billion to shrink Paramount's debts.
After the agreement is completed, the 41-year-old Ellison is expected to assume the role of Paramount's CEO. His father, Larry Ellison, is the billionaire pioneer of software conglomerate Oracle. Bronfman is part of the Seagram spirit company's family dynasty and has previously served as CEO of Warner Music Group.
Paramount's Official Statement
The successful acquisition of Paramount by David Ellison's Skydance is set to be finalized in the early part of 2025, with Ellison potentially taking over as CEO. Despite rumors of a bidding war in Los Angeles, the deal seems to have been largely sealed by Ellison's multibillion-dollar offer.
