David Ellison’s Skydance is awaiting final approval for the takeover of TV & film studio
The US-owned Channel 5 has signed a merger agreement worth $8bn (£6.3bn), with the production company of a tech billionaire heir, bringing an end to . This was a long-running takeover drama.
Paramount, the television and film studio that was formerly ViacomCBS has agreed to terms for a merger with Skydance. Skydance is a company founded by David Ellison whose father, Silicon Valley mogul Larry Ellison, set it up.
CNBC reported that the deal is valued at $8bn.
The payout includes $2bn for the controlling shareholder Shari redstone whose family controls Paramount since 1994. They are one of America’s most prominent media dynasties.
The hit TV series Succession is said to be based on their story. Ms Redstone took over the business from her dad.
CNBC reported that Ms Redstone who owns around 77pc in Paramount through her National Amusements Company, must still sign off on this deal. In the coming days, an announcement is expected on a possible tie-up.
This deal suggests that the takeover drama is nearing its end. It would mean a change in hands for some of world’s largest film and television studios.
Paramount is responsible for many Hollywood blockbusters, including Titanic and Forrest Gump.
In February, its superhero film Madame Web and Sony’s music biopic Bob Marley One Love were beaten by the studio.
Paramount owns a number of television channels including Channel 5, MTV Nickelodeon, and Comedy Central.
David Ellison’s entertainment company Skydance emerged late last year as a possible bidder for Paramount amid a flurry interest from rival production giants.
Skydance previously worked with Paramount to produce the Top Gun: Maverick movie.
Skydance is also responsible for Mission: Impossible: Ghost Protocol.
James Cameron, Titanic’s director, said that Mr Ellison’s ownership of the company could be “a huge boon in these difficult times”.
He said: “I love Ellison’s idea.”
Skydance was backed by the private equity firms KKR, RedBird Capital and a fund which had made a offer to control The Telegraph as part of a joint venture between the UAE and UAE.
The deal that was rejected by the government due to concerns about press freedom is now being prepared for a further sale.
Other major studios also expressed an interest.
Harry Potter Warner Bros was also in talks about a merger with Paramount. Sony Pictures, meanwhile, is looking to agree a deal with private equity firm Apollo Global Management.
Byron Allen is a prominent US film and television producer who also made a $14.3bn bid.
Paramount declined comment. Skydance declined to comment.
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