Why Paramount Global Shares Are Gaining Today
Paramount Global (NASDAQ:PARA) shares are trading higher after billionaire Barry Diller is reportedly exploring a bid to take control of the company.
IAC Inc. (NASDAQ:IAC), the digital media conglomerate led by Diller, has entered into nondisclosure agreements with National Amusements, Paramount’s controlling shareholder, The New York Times reported, citing people aware of the discussions.
Nondisclosure agreements play a crucial role in negotiations, enabling both parties to share confidential information.
Also Read: Paramount And Skydance Merger Talks Fall Through: Report
Diller’s interest in Paramount marks a pivotal development in a highly intricate and dramatic attempt to sell a media company, following Paramount’s near-deal with Skydance that collapsed unexpectedly in recent months, The New York Times added.
The nondisclosure agreements were executed after the Paramount-Skydance deal fell apart in June, the report added, citing two sources. The progress of talks between IAC and National Amusements remains uncertain.
Other potential acquirers of National Amusements include Edgar Bronfman Jr., a media and finance executive, and Steven Paul, known for the “Baby Geniuses” franchise in Hollywood, the report added.
For Diller, aged 82, a potential acquisition of Paramount would mark a significant moment, recalling his earlier attempt to acquire Paramount Pictures in the early ’90s, when he was outbid by the assertive media tycoon Sumner Redstone. Now, control of Paramount rests with Sumner’s daughter, Shari Redstone.
Acquiring National Amusements would grant control over Paramount and its valuable studio library, bypassing the need for a full company acquisition.
However, it also entails assuming substantial liabilities, including approximately $14 billion in debt and challenges in its cable business operations, The New York Times added.
Price Action: PARA shares are trading higher by 3.99% to $10.55 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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