The Paramount logo is displayed at Columbia Square along Sunset Blvd in Hollywood, California on March 9, 2023.
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Decisive and Skydance have agreed to terms for a merger, which will likely be announced in the coming days, CNBC's David Faber reported Monday.
A special committee of Paramount and the purchasing consortium – David Ellison's Skydance, backed by private equity firms RedBird Capital and KKR – agreed to the terms. The deal is awaiting signature by Paramount's controlling shareholder Shari Redstone, who owns National Amusements, which owns 77% of Class A Paramount shares, Faber said Monday.
The agreement comes after weeks of discussions and following a recent competing bid from Apollo Global Management and Sony Pictures.
The deal currently calls for Redstone to receive $2 billion for National Amusements, Faber reported Monday. Skydance will buy out nearly 50% of Class B Paramount shares for $15 each, leaving holders with shares in the new company.
Skydance and RedBird will also contribute $1.5 billion in cash to Paramount's balance sheet to help reduce debt. After the deal closes, Skydance and Redbird will own two-thirds of Paramount, and Class B shareholders will own the remaining third of the company, Faber reported.
This is the latest news. Check back later for updates.
