National Amusements ends Skydance talks: WSJ

Shari Redstone's National Amusements has ended discussions about selling the company to Skydance Media, according to a report from The Wall Street Journal. National Amusements is the company that controls Paramount Global (PARA, PARAA).

Yahoo Finance's Alexandra Canal reports the breaking details.

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This post was written by Stephanie Mikulich.

Video transcript

A dramatic new development in the Paramount Saga.

Sherry Redstone's National Amusements reportedly deciding to stop discussions with Sky Dance.

Yahoo Finance's Alexander Canal is always is on it.

What the Julie I sit over there and we knocked on.

What about this deal?

But yes, this is very surprising ending.

Those conversations with Sky Dance.

According to the Wall Street Journal, Redstone will now like to pursue a sale of just national amusements.

National Amusements is the holding company that controls Paramount.

Shari Redstone is head of that.

That's the voting share, that's the power and that's what she wants to sell prior.

She wanted to potentially sell national amusements.

Then whoever bought that would merge with Paramount into another company, but she wants to keep it separate.

Now, when it comes to that potential sale of national amusements, we see several names emerge.

Stephen Paul, friend of Shari Redstone, also a producer.

He's been a rumor name.

He's reportedly offering her more money funded by the founder of patron Tequila.

There's also been interest from media executive Edgar Brompton, Broman Ju so many personalities and he's backed by private equity firm Bain Capital, but take a look at shares right now, they are down about 10% because she keeps getting these offers.

She keeps finding reasons not to take them pretty soon.

She's gonna run out of offers if she keeps II.

I don't know.

I mean, isn't that just?

And they have an analysts out there.

Rich Greenfield being one of them that he predicted from late check partners.

He predicted that there will be no sale by the end of this year that they're just going to be in wait and see mode.

It's interesting with the Sky Dance deal because this is a deal that Shari Redstone initially wanted, she received some pushback from investors.

Sky Dance went, they sweetened their offer multiple times.

It seemed like we were in a good space.

We had a positive share reaction on the heels of those talks developing and now we have the talks ending and, and you know, I thought something might be going on because when you hear no news for some time, she had the deal in her hand for about a week, didn't indicate anything and you know, those employees were getting a little bit antsy here.

So now the question is ok, is she going to actually pursue a sale of national amusements or at this point?

Is she just gonna ride it out and see what happens?

You also wonder where the lawsuits fly.

I mean, that was a lot of money being offered 8 billion.

I know a lot of money being offered uh uh a high buy out if you were an investor of Paramount.

And yeah, you wonder at what point if you are a shareholder, do you get out of this name?

Because you just don't know what's, well, there are some people getting a lot of people getting out right now.

We'll see where shares close.

We will.

ALEC Thanks for keeping on top of it for us.