PARAA - Paramount Shareholders Express Concerns Over Potential Skydance Media Merger: 'Any Merger Talks That Forego Competitive Bidding...Is Averse To The Fair Market Value Of A Company' | Benzinga
As Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) navigates through a potential merger with Skydance Media, investor concerns are surfacing regarding the deal’s fairness and the exploration of alternative options.
What Happened: Some investors of Paramount Global are voicing their unease over a potential merger with Skydance Media. Concerns focus on the deal’s fairness and the exploration of other options. Reuters reported on Thursday that not all shareholders support the potential $4 billion to $5 billion stock deal.
One long-standing shareholder expressed fears of investors receiving a “raw deal.” Meanwhile, Ariel Investments is advocating for a comprehensive review of alternatives, which they believe could be more beneficial for shareholders.
“Any merger talks that forego competitive bidding in favor of an exclusive discussion with a single buyer, particularly where the reported control premium differentiates the financial position of a single shareholder over all other shareholders, is averse to the fair market value of a company,” Ariel said in a statement.
Paramount has entered into a 30-day exclusive negotiation period with Skydance, while a special committee evaluates the acquisition. Concurrently, Skydance is negotiating to acquire National Amusements, which holds the Redstone family’s controlling ...