Barry Diller joins the battle for control of Paramount after talks with Skydance are scrapped: Report
By Ciara Linnane
IAC has signed non-disclosure agreements with Shari Redstone's National Amusements to explore a potential deal
Paramount Global's stock rose 2.4% Tuesday, after a report that billionaire Barry Diller's IAC is exploring a bid for Paramount, after talks between the parent of CBS and Nickelodeon and David Ellison's Skydance Media fell apart in June.
The stock was leading S&P 500 gainers in premarket trade.
The report in the New York Times said IAC (IAC) had signed non-disclosure agreements with Shari Redstone's National Amusements-Paramount's (PARA) controlling shareholder-a key step in deal making that will allow both parties exchange confidential information. The report cited four people with knowledge of the matter.
IAC is moving in after talks between Redstone and Skydance were ended in June following weeks of tensions that saw the departures of Paramount's chief executive and several board directors, the emergence of rival bidders and anger from some shareholders who felt the deal with Skydance would reward Redstone at their expense.
Paramount and other media companies have cut costs, laid off staff and sought to combine as they try to find a path to profits for their streaming services and compete with Netflix Inc., which some analysts have already crowned the winner of the streaming wars that began more than a decade ago. Studios have pulled back on TV production in the wake of last year's strikes.
Sony and private-equity firm Apollo Global Management Inc. also made their own offer for Paramount in May.
Two other parties that were reported by the Wall Street Journal to have an interest in Paramount were former media executive Edgar Bronfman Jr., who would have the backing of private-equity firm Bain Capital, and Hollywood producer Steven Paul.
Skydance-a production company behind some of Tom Cruise's "Mission Impossible" films-wanted to buy National Amusements for roughly $1.7 billion in cash, the Journal said. After that, Skydance would have merged with Paramount in a stock deal, the Journal said. David Ellison is the son of Larry Ellison, co- founder and chief technology officer at Oracle Corp.
The NDAs between Diller and Paramount were signed after the deal with Skydance fell through, according to the Times.
Diller attempted to buy Paramount Pictures back in the early '90s, but was outbid by Sumner Redstone, the late father of Shari.
Diller then worked to build out his own media company/
IAC's stock rose 0.6%, but is down 12% in the year to date. Paramount's stock has fallen 29% in the year to date, while the S&P 500 SPX has gained 14.8%.
Bill Peters contributed to this article.
-Ciara Linnane
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07-02-24 1033ET
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