Yahoo Finance Paramount in exclusive acquisition talks with Skydance Media: NYT
Paramount Global (PARA) is reportedly in exclusive acquisition talks with Skydance Media, according to the New York Times. Yahoo Finance Live covers the likelihood of an acquisition deal while monitoring Paramount's stock movement on the news this morning.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- Well, Paramount is reportedly one step closer to a sale. "The New York Times" reporting that negotiations for a possible merger between Paramount and Skydance are heating up as the two companies enter into exclusive talks. This following reports from Bloomberg in January that Skydance Media CEO David Ellison made a preliminary offer to acquire National Amusements from the Redstone family as a way to take control of Paramount Global.
We're not seeing much reaction in the stock here this morning. It's still early in the trading day, off just about 8/10 of a percent. But Maddie, this is just the latest here in the saga that has played out with Paramount. There's been lots of talk, lots of chatter about what a potential takeover is going to look like. Not so much if this is going to happen, when this is going to happen, who is going to be acquired by given the fact that, obviously, competition within the space is really heating up.
We know the larger players have a massive advantage within this. Now, many of these companies under pressure because of the rise in streaming costs. So this is an interesting development here. Not fully confirmed here, just reports here from "The New York Times." But it does look like it maybe is one step closer to eventually reaching a deal.
- I mean, it comes at a difficult time for Paramount, as you kind of mentioned here. This stock is down 20% So far this year. We did see some movement in the pre-market on Wednesday after this "New York Times" report about that meeting. Like you mentioned it was up a little over 2% in the morning trade this morning. Now paring back some of those gains a little bit. Could be related to the broader market action, though.
Having said that, it does seem like this is becoming an even more critical and more time-sensitive issue. And we are hearing some reporting as well that this does suggest that we are getting closer to some type of takeover or movement here. So hopefully getting some news on that as we continue to monitor this. But a tough year if you're a Paramount stockholder just given that performance so far.
