NEW YORK (AP) — National Amusements, which owns a majority voting stake in entertainment giant Paramount Global, said Tuesday it has ended talks on a possible merger of Paramount with film producer Skydance Media.
The potential deal has drawn attention for weeks amid concerns about Paramount’s future given its heavy debt and declining television business. A media report in early June even claimed that Paramount and Skydance had agreed to the terms of a deal, pending approval from Paramount’s controlling shareholder, Shari Redstone. A statement from National Amusements only noted that the two sides “were unable to reach mutually acceptable terms” for the deal.
Skydance, based in Santa Monica, California, has helped produce some big hits for Paramount in recent years. This includes several Tom Cruise films, including “Top Gun: Maverick” and episodes of the “Mission: Impossible” series. Its founder and CEO is David Ellison, son of Oracle founder Larry Ellison.
Robert Fishman, an analyst at MoffettNathanson, said the deal’s collapse leaves Paramount with the same problems that have long weighed it down, and little prospect of an infusion of cash or new ideas to help turn things around.
“EM. Redstone now appears determined to continue the status quo or to divest just her stake in NAI, handing over the reins of her family’s empire to new managers, without delving into any broader or more complicated plans involving other companies. media or shareholders,” Fishman wrote in a note to investors on Tuesday.
Paramount has struggled in an evolving media landscape, especially as its traditional cable TV business has declined. To capture today’s growing streaming audience, the company launched Paramount+ in 2021but losses and debts still accumulated over time.
Shares of New York-based Paramount Global ended Tuesday down nearly 8%.
