NEW YORK – Paramount Global (NASDAQ: PARA, PARAA) has ended its “go-shop” phase after Edgar Bronfman Jr.’s investor consortium withdrew its takeover offer. Paramount’s Special Committee of the Board of Directors confirmed the withdrawal and the end of the tender process that was part of the agreement with Skydance Media, LLC.

Over the past eight months, the Special Committee has spoken with more than 50 potential buyers to evaluate alternative acquisition proposals. Charles E. Phillips Jr., Chairman of the Special Committee, thanked Mr. Bronfman and his group for their interest and efforts at Paramount.

The Committee continues to believe that the agreed transaction with Skydance Media offers immediate value to shareholders and potential for continued value creation within the dynamic industry landscape. The Skydance deal is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.

Centerview Partners LLC is serving as financial advisor to the Paramount Special Committee, and Cravath, Swaine & Moore LLP is serving as legal counsel.

Investors and security holders of Paramount are advised to read the upcoming registration statement on Form S-4, which will include an information statement and prospectus and other documents relating to the transactions that will be filed with the SEC. These documents will contain important information about the transactions.

This communication is for information purposes only and does not constitute an offer to buy or sell securities. The transactions are subject to various conditions, including regulatory approvals, and there is a risk that they may not be completed as planned or at all.

This announcement is based on a press release and contains forward-looking statements that involve risks and uncertainties. Actual results may differ from those projected as a result of various factors, including the risk that transactions are not completed as expected or that regulatory approvals are not received. Paramount undertakes no obligation to publicly update any forward-looking statements.

In other recent news, Paramount Global was at the center of significant developments. Notably, the company reported a robust second-quarter performance, including 43% growth in the company’s total adjusted OIBDA and a 46% increase in Paramount+ revenue. In the analyst world, Loop Capital maintained its sell rating on Paramount, while Wells Fargo raised its rating to Equal Weight from Underweight and increased the stock’s price target to $11.00.

Media executive Edgar Bronfman Jr. has made a $4.3 billion offer to acquire National Amusements, the company with a controlling interest in Paramount Global. The offer challenges Skydance Media’s previous agreement to buy Paramount Global and could result in a $400 million settlement.

Paramount Global also announced plans to merge with Skydance Media, which is consistent with the company’s strategic focus on streamlining operations and expanding content offerings. These recent developments underscore Paramount Global’s strategic moves and financial performance, all important information for investors.

InvestingPro Insights

Given the recent developments at Paramount Global (NASDAQ: PARA, PARAA), investors are closely monitoring the company’s financial metrics and market performance. According to data from InvestingPro, Paramount Global has a market capitalization of $8.06 billion. While the company’s P/E ratio stands at negative -1.43, reflecting past challenges in profitability, the trailing twelve-month adjusted P/E ratio from Q2 2024 improves to 7.59, suggesting a more favorable outlook.

Tips from InvestingPro indicate that Paramount Global is a major player in the media industry and has paid dividends for 19 consecutive years, with the most recent dividend yield being 1.77%. This consistency in returning value to shareholders could be attractive to long-term investors, especially in a volatile market where Paramount’s share prices are quite volatile. Additionally, since the company has not been profitable in the last twelve months, analysts are forecasting that Paramount will become profitable this year, which could signal a positive trend for the company’s financial health.

Also notable is that Paramount’s revenue for the trailing twelve months (as of Q2 2024) stands at $29.27 billion despite a slight decline in revenue growth of -2.2%. The company’s gross profit margin remains robust at 34.3%, which could be a sign of effective cost management and a strong market position. Investors interested in a deeper analysis can find additional InvestingPro tips for Paramount Global at https://www.investing.com/pro/PARA where there are even more insights to discover.

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