Members of Paramount Global’s board agreed on Wednesday to enter into exclusive merger talks with Skydance Media, favoring the independent studio over a $26 billion offer from Apollo Global Management, a person familiar with the matter said.
The deal talks, which are more advanced than the offer from the US private equity firm, are part of a two-step process that, if successful, would end Shari Redstone’s control of the media empire built by her father, the late Sumner Redstone.
A special committee of Paramount’s board elected “to pursue the bird in hand,” rather than chase a deal “that might not actually come to fruition,” said the person with knowledge of the board’s action, adding that the period of exclusivity for discussions will run for 30 days.