HomeIndustriesParamount Stock Plunges After Termination of Skydance Merger

Paramount Stock Plunges After Termination of Skydance Merger

Paramount’s proposed merger with Skydance Media is off after its parent company, National Amusements, and controlling shareholder Shari Redstone decided to pull the plug on the deal. This caused Paramount stock to plunge more than 10% on Tuesday.

Back in April, Skydance entered into negotiations that would see them take over National Amusements in a $1.7 billion agreement while also buying out Paramount’s nonvoting shares and other voting shares for an additional $4.5 billion. Paramount would then merge with Skydance

However, according to The Wall Street Journal, Redstone had a change of heart just before a committee of Paramount directors was set to vote on the merger.

The deal was reportedly off because the two sides couldn’t come to terms that were “mutually acceptable.” Redstone will now continue exploring options to sell National Amusements without a merger for Paramount.

Paramount is currently struggling with debt as it faces profitability issues with its streaming service Paramount+ while also experiencing a shrinking cable-TV customer base. The company’s long-term debt stood at $14.6 billion at the end of 2023.

After the news about the termination of the Skydance merger went public, Paramount’s shares dipped from $12.23 per share to $10.96. Its stock is 22.78% down year-to-date.

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