PARAMOUNT’S MERGER DEAL WITH SKYDANCE FALLS APART

AFTER WEEKS OF NEGOTIATIONS, PARAMOUNT’S POTENTIAL MERGER DEAL WITH SKYDANCE HAS COLLAPSED. ACCORDING TO THE WALL STREET JOURNAL, THE PARENT COMPANY OF PARAMOUNT, NATIONAL AMUSEMENTS, STATED ON TUESDAY THAT THE TWO COMPANIES WERE UNABLE TO REACH MUTUALLY ACCEPTABLE TERMS FOR THE DEAL.

POSSIBLE ISSUE SURROUNDING SKYDANCE’S DECISION

ONE POTENTIAL ISSUE THAT MAY HAVE LED TO THE BREAKDOWN OF THE DEAL WAS SKYDANCE’S FAILURE TO INCLUDE LEGAL PROTECTIONS THAT WOULD HAVE SHIELDED NATIONAL AMUSEMENTS HEAD SHARI REDSTONE FROM SHAREHOLDER LAWSUITS. ACCORDING TO THE HOLLYWOOD REPORTER, REDSTONE IS NOW CONSIDERING PURSUING THE SALE OF NATIONAL AMUSEMENTS WITHOUT ATTEMPTING TO MERGE PARAMOUNT WITH ANOTHER COMPANY.

CHALLENGES AHEAD FOR PARAMOUNT

PARAMOUNT IS ALSO FACING CHALLENGES WITH ITS STREAMING SERVICE. DESPITE GROWTH IN SUBSCRIPTIONS AFTER AIRING SUPER BOWL LVIII, PARAMOUNT PLUS HAS YET TO BECOME PROFITABLE. THE COMPANY IS DEPENDENT ON CONTENT LIKE "STAR TREK" AND "HALO" TO ATTRACT VIEWERS, BUT WITHOUT REGULAR SUPER BOWL BROADCASTS, SUSTAINING VIEWERSHIP MAY BE DIFFICULT.

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