Paramount rallies as reports say Skydance merger is now agreed

Paramount Global (NASDAQ:PARA) stock was up 7% in Monday’s dealing on reports a deal is now agreed to merge with Skydance.

The tems of the merger have been agreed and will likely be announced in the coming days, a CNBC report claimed.

In the meantime, the deal is awaiting ‘signoff’ from Paramount’s controlling shareholder Shari Redstone, the mainstream financial media outlet said.

According to CNBC, and a separate Wall Street Journal report, Redstone’s National Amusements vehicle stands to receive $2 billion through the transaction.

Skydance would pick up ‘nearly 50%’ of Paramount in the deal, CNBC added, with the deal pitched at a price of $15 per share – valuing Paramount at $4.5 billion.

On Monday, in New York, Paramount shares were up 82 cents or 6.9% changing hands at $12.75 each.

It is reported that Skydance and Redbird, a UAE-backed partner to Skydance, will also inject some $1.5 billion into the enlarged media conglomerate.

Hollywood media executive Jeff Zucker leads Redbird and its investors include Sheikh Mansour bin Zayed Al Nahyan, who runs the sovereign wealth investments for the Abu Dhabi royal family which owns Manchester City Football Club along with a wide range of investments worldwide.