(Bloomberg) — The Redstone family and independent film producer David Ellison have offered concessions to make a possible change in control of Paramount Global more attractive to other investors in the company, according to a person familiar with the negotiations.
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Ellison is proposing to buy a block of Paramount shares at a premium to the current price to help shore up the company’s finances, according to the person, who asked not to be identified discussing private negotiations. The Redstones, who own the majority of the company’s voting shares, agreed to allow non-voting shareholders to have a say in whether any transaction should be approved. Both sides are trying to seal a deal in the face of a massive shareholder revolt.
The Skydance offer was described by several parties as the “best and final offer” on Sunday. Paramount’s board is still undecided about reaching a deal with Ellison, given opposition from other investors. Meanwhile, CEO Bob Bakish is expected to be replaced on an interim basis by a management committee as early as Monday.
Skydance and Paramount declined to comment.
Ellison, the son of Oracle Corp. founder Larry Ellison, has been in exclusive talks with an independent committee of Paramount directors about a possible transaction. His offer includes the purchase of a controlling stake in Paramount held by the Redstone family and the merger of his Skydance Media with the company.
The deal, although never formally announced, faced opposition from several shareholders who saw it as an opportunity for the Redstones to profit, but one that would dilute the position of non-voting shareholders, who would hold less of a stake in the company. Class B non-voting shares are down about 19% this year.
Read more: Paramount shares take a hit from dilution risk
Paramount, parent company of CBS, MTV and other media companies, has struggled with the transition from traditional TV viewing to streaming. The company’s TV channels saw their advertising revenues fall. The streaming service Paramount+, although it signed up about 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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