Capital Economy, Business and Finance
Paramount did not produce the film Groundhog Day, but seems to be living it. David Ellison of Skydance Media is close to agreeing a $2.4 billion deal to effectively take control of the last great Hollywood studio, after an earlier attempt was accepted (then rejected) by Paramount owner Shari Redstone. Redstone has been looking to sell her family firm, NAI, and its controlling stake in the Top Gun studio since December. But Paramount’s other shareholders threatened legal action over Ellison’s original bid, which shut them out of the deal. This new offer is designed to safeguard Redstone from legal jeopardy. And if that seems confusing, buckle up – where Ellison’s previous offer had a 30-day exclusive lock in, these new conversations allow Paramount to keep shopping around for 45 days.
Other suitors include but are not limited to:
- billionaire Barry Diller, the former Paramount boss, founder of the Fox network and tech investor;
- Edgar Bronfman Jr., former boss of Universal and Warners Music and now a wealthy media and finance executive;
- Steven Paul, actor, producer, talent manager and the man responsible for the “Baby Geniuses” franchise and Bratz: the Movie;
- Sony Pictures and Apollo Global Management; and
- Byron Allen, producer, investor and stand up comedian.
Meanwhile, managers of various Paramount assets including BET, VH-1 and the legendary Paramount lot itself are all involved in trying to buy out their slice of the business. Warner Bros. Discovery is kicking the tyres on the Paramount+ streaming service. As William Goldman wrote in the definitive Hollywood book Adventures in the Screen Trade: “Not one person in the entire motion picture field knows for a certainty what’s going to work. Every time out it’s a guess and, if you’re lucky, an educated one.”
