Paramount Global (NASDAQ:PARA) could be the target of a major takeover by RedBird Capital, in collaboration with Skydance Media CEO David Ellison, who are eyeing the acquisition of National Amusements' voting shares to gain control of the media conglomerate.
Shari Redstone, currently the non-executive chairwoman of Paramount Global (NASDAQ:PARA) and president of National Amusements (NAI), controls the company through its class A shares.
The potential acquisition of National Amusements' shares could grant RedBird and Skydance control over Paramount Global (NASDAQ:PARA) without a full purchase, providing an opportunity to divest undesirable assets or seek a strategic partner, according to reports.
RedBird and Skydance, which are reportedly interested in Paramount Pictures and other intellectual property, could utilize this approach to gain influence.
National Amusements holds around 10% of Paramount's equity capital value and controls 77% of voting shares, estimated at $1 billion.
Paramount Global (NASDAQ:PARA), with a current market cap of approximately $11 billion, has long been seen as an acquisition target due to its smaller size compared to industry competitors like Disney and Netflix, with market caps of $170 billion and $199 billion, respectively.
Paramount is actively working on divesting non-core assets to reduce debt and improve its balance sheet, as demonstrated by the recent $1.62 billion all-cash sale of Simon & Schuster to investment firm KKR.