Divided Paramount Board to Vote on David Ellison and Skydance Acquisition

Paramount Global’s board of directors is poised to vote Tuesday on David Ellison’s proposed acquisition of the troubled media company amid divisions among board members that have raised the level of drama in an already tumultuous sale process. .

Two sources familiar with the sales process confirmed that top independent director Charles Phillips has long been opposed to Ellison’s Skydance Media production deal to take control and is expected to vote against the proposed deal.

Controlling shareholder Shari Redstone did not attend Tuesday’s meeting. Instead, the five independent directors, charged with looking out for the financial interests of all Paramount shareholders, were called to meet.

Redstone has long been in favor of the Ellison deal, believing it was the best viable option to preserve the media company his family has controlled for more than 35 years. Any deal requires the approval of the Redstone family because it controls 77% of the voting shares in the company that owns Paramount Pictures, CBS, BET, MTV and Comedy Central.

The board meeting is scheduled for 11:30 a.m. PT, one of the people with knowledge said.

More than a week ago, independent directors at Paramount Global signaled their approval Ellison’s Offer following a nearly six-month review process that exposed deep divisions within the media company. Phillips, a former executive at Oracle, the company co-founded by David Ellison’s father, Larry Ellison, has long been “an antagonist” to the deal, one of the people with knowledge said.

Earlier this month, four board members left the board, leaving just six board members, including Redstone. Tensions surrounding the deal have plagued the board throughout the year. In April, Paramount chief executive Bob Bakish was ousted. He also opposed Ellison’s deal.

Corporate governance experts said the transaction will trigger lawsuits from shareholders due to the Redstones’ outsized influence on the company.

See more information: Skydance talks to Paramount near finish line, but Redstone family decision looms

Ellison has been chasing Paramount since last summer. On Monday, after a weekend of negotiations, lawyers for both sides — Skydance and the Redstone family — agreed on several important outstanding issues, but were still wrestling with the remaining points of the settlement, according to three people familiar with the matter. who were not authorized to comment, given the sensitive nature of the talks.

Puck’s Matt Belloni first reported the news of the meeting and Phillips’ opposition.

The story continues

See more information: Paramount Global reveals business plan and job cuts as sale nears

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This story originally appeared on Los Angeles Times.