It could be a wild trading session 🎢

National Amusements Halts Talks with Skydance on Paramount Deal, Sources Say 🎬

National Amusements has ended discussions with Skydance regarding a proposed merger with Paramount Global, concluding months of negotiations without a deal.
National Amusements, controlled by Shari Redstone, had previously agreed on economic terms for a merger involving Skydance, RedBird Capital, and KKR.

Breakdown of Merger Talks 🛑
Despite reaching economic terms, the deal stalled as National Amusements and Skydance could not agree on all terms. National Amusements, which owns 77% of class A Paramount shares, announced on Tuesday that they were unable to reach mutually acceptable terms. "NAI is grateful to Skydance for their months of work and looks forward to ongoing collaboration," the statement said.

Market Reaction 📉
Following the report, Paramount shares closed nearly 8% lower on Tuesday. National Amusements expressed support for Paramount’s strategic plan and ongoing efforts to drive value for shareholders. The company highlighted its commitment to working with Paramount’s Office of the CEO and Board of Directors.

Points of Contention ⚖️
Sources familiar with the matter indicated that a disconnect on certain terms, including a "majority of the minority" vote requested by Redstone, contributed to the breakdown. Skydance found this clause impractical to add after lengthy discussions. Additionally, internal disagreements, including private comments critical of Skydance CEO David Ellison, were cited as factors.

Paramount and Skydance declined to comment on the failed talks. The Wall Street Journal earlier reported the cessation of discussions. The Special Committee of the Board of Directors of Paramount Global confirmed that they did not vote on any potential transaction as no agreement was reached.