(Bloomberg) — The Redstone family and independent film producer David Ellison have both offered concessions to make a potential change in control of Paramount Global more attractive to the company’s other investors, according to a person familiar with the negotiations.
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Ellison is offering to buy a block of Paramount shares at a higher price than their current price to help shore up the company’s finances, according to the person, who asked not to be identified discussing private discussions. The Redstones, who own the majority of the company’s voting stock, agreed to let non-voting shareholders have a say in whether a transaction is approved. Both sides are trying to reach a deal in the face of a major shareholder revolt.
Skydance’s offer was described by several parties on Sunday as the “best and final offer.” Paramount’s board is still undecided about striking a deal with Ellison, given opposition from other investors. Meanwhile, general manager Bob Bakish is expected to be replaced on an interim basis by a management committee as of Monday.
Skydance and Paramount declined to comment.
Ellison, the son of Oracle Corp. founder Larry Ellison, is in exclusive talks with an independent committee of Paramount directors about a possible transaction. His offer includes buying out the majority shares of Paramount held by the Redstone family and merging Skydance Media into the company.
The deal, although never officially announced, was opposed by a number of shareholders who saw it as a chance for the Redstones to cash in, but which would dilute the position of the disenfranchised shareholders. voting rights who would hold fewer shares in the company. Non-voting Class B shares have fallen about 19% this year.
Read more: Paramount shares hit by dilution risk
Paramount, the parent company of CBS, MTV and other media companies, is struggling to transition from traditional television to streaming. The group’s television channels have seen their advertising revenues fall. The streaming service Paramount+, despite having some 67 million subscribers, continued to lose money.
Several shareholders urged the company to consider other offers, including negotiating with Apollo Global Management Inc.
(Updates with stock performance in sixth paragraph.)
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