
Billionaire Mario Gabelli, a key voting shareholder in the holding company that controls Paramount, said he may remain an investor despite initial reservations about a merger with Skydance. This follows Shari Redstone’s surprise acceptance of a merger proposal from Skydance, the Hollywood studio behind the “Mission: Impossible” franchise. “I may not sell stock if there is a deal with Skydance.
I need to see the transaction’s structure,” Gabelli said in an exclusive interview. While withholding a final opinion until further details are revealed, Gabelli expressed optimism about the deal. “If Skydance is paying $1.75 billion for National Amusements Inc.
(NAI) and NAI has $500 million of debt, that’s $1.25 billion left for NAI shareholders,” he noted, approximating a value of $20 per share. Gabelli’s potential lawsuit had been seen as a significant obstacle in the merger negotiations. However, the new arrangement, according to Gabelli, seems more favorable for minority shareholders, including himself.
Under the proposed deal, National Amusements, which holds 77% of Paramount’s voting shares, will not mandate approval from most non-Redstone shareholders.
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