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Investing.com -- Paramount Global (NASDAQ:PARA) stock rose 2.4 following the Federal Communications Commission’s approval of the company’s merger with Skydance Media, marking a key regulatory milestone for the $8 billion deal.
FCC (BME:FCC) Commissioner Olivia Trusty issued a supportive statement on the transaction, describing it as "the free market at work" and noting that the Commission determined the merger was lawful and would serve the public interest. The approval comes after a review period that extended beyond the FCC’s informal 180-day timeline.
The three-way merger agreement, reached initially on July 2, 2024, involves Skydance, National Amusements, and Paramount forming what will be called "Paramount Skydance Corporation." The combined entity is estimated to be worth approximately $28 billion.
Under the deal’s structure, Skydance, backed by the Ellison family and RedBird Capital Partners (WA:CPAP), will acquire National Amusements for $2.4 billion in cash. Skydance will then merge with Paramount, allocating $4.5 billion for Paramount’s Class A and Class B shareholders ($23 per Class A share and $15 per Class B share, in cash or stock) and $1.5 billion to reduce Paramount’s debt.
Once the merger is complete, David Ellison will serve as chairman and CEO of the new company, with former NBCUniversal CEO Jeff Shell taking the role of president.
The FCC approval represents a significant step forward for the transaction, which still faces additional regulatory hurdles before completion.
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