According to a contract that Paramount Global and Skydance Media reached on Friday, the media giant would purchase the independent studio for about $5 billion in all-stock exchange.
According to the article, National Amusements, the company that owns Paramount, would get more than $2 billion in cash as part of the initial phase of the deal under the conditions under discussion.
According to the Journal, which cited people with knowledge of the situation, Skydance may also provide Paramount, the company that owns the Paramount Pictures movie studio, a considerable financial boost to strengthen its balance sheet and aid in debt repayment. After business hours, when the sources asked for comments on the WSJ claim, Paramount and Skydance did not reply.

According to sources on Wednesday, members of the Paramount board decided to pursue exclusive merger negotiations with Skydance Media, choosing the independent studio over a $26 billion bid from Apollo Global Management. The Wall Street Journal reported that Redstone would receive cash from the merger and investors with nonvoting shares would receive equity in the merged firm. The combined entity would have far greater freedom over what it might do with those franchises.
Skydance might give Paramount a sizable cash infusion to strengthen its balance sheet and aid in debt repayment.

If the buyout talks are successful, Shari Redstone’s authority over the media empire her late father Sumner Redstone founded would cease. The talks are more advanced than Apollo’s offer.

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