Skydance Media is in early talks over an all-cash offer for National Amusements, the parent of media giant Paramount Global, in an effort that would eventually merge both Skydance and Paramount, the Wall Street Journal reported on Wednesday.
Citing sources familiar with the matter, the Journal said that under the current offer being discussed, Skydance Chief Executive David Ellison and investors — including Larry Ellison, his father — would buy “at least a majority stake” in National Amusements from the Redstone family. From there, they would try to combine Skydance with Paramount PARA, -0.77%, the Journal said.
Skydance is one of Hollywood’s top independent studios, and has produced Paramount blockbusters such as “Mission: Impossible — Dead Reckoning” and “Top Gun: Maverick.”
The entertainment industry is bracing for more consolidation, more investor pressure for streaming profits, a migration away from cable TV and changes in the movie-theater business. The Journal’s report follows reports last month of Skydance’s interest, as well as reports that Warner Bros. Discovery Inc. WBD, -0.54% was in talks to combine with Paramount.
The Journal on Wednesday said that WBD “has continued to express interest” but that the discussions “haven’t advanced.”
Shares of Paramount were up 0.9% after hours. The stock is down about 30% over the past 12 months, compared to the S&P 500’s SPX roughly 20% gain.