July 8 (UPI) -- Paramount Global, the owner of Paramount Pictures, CBS television, Comedy Central, Nickelodeon and MTV said Monday it had accepted a $8 billion takeover bid from U.S. independent film, animation and gaming production company Skydance.
A special committee of the Board of Directors of the NASDAQ-listed Paramount Global confirmed that after a six-month search for a buyer, it had unanimously approved a merger agreement between Paramount and Santa Monica, Calif.,-based Skydance Media, Paramount said in a news release.
The merger agreement does include a 45-day "go-shop" clause for the special committee and its representatives to actively solicit and consider alternative acquisition proposals for the 110-year-old Hollywood studio, maker of blockbusters such as The Godfather, Star Trek and Mission Impossible.
Under the agreement, Skydance which is owned by David Ellison, son of Oracle founder Larry Ellison, and Red Capital, will inject around $8 billion into Paramount, including paying $2.4 billion for parent company National Amusements and $1.5 billion in capital to create "New Paramount," billed by Skydance as "a next-generation media and technology leader."
The all-stock deal will see holders of Paramount class A shares receive $23 per share in cash or stock, or a combination of both, and class B shareholders receive $15 per share in cash or stock, with the total cash amount capped at $4.5 billion.