Paramount and Skydance Close to Merger

Shares of Paramount jumped 8% this week after the news of their merger with Skydance. The on-again, off-again courtship seems to be back on, as the two sides reportedly have reached a preliminary merger deal.

Skydance would buy Paramount’s controlling company, National Amusements, and then merge with Paramount, who owns CBS, MTV and its namesake studio and streaming platform (which, as we covered, is increasing their prices).

Initially, National Amusements ended talks last month after Skydance tried to sweeten the pot. But the two sides have evidently worked things out since then.

Paramount has also been looking to sell off BET, as executives have outlined a three-pronged strategy of job cuts, asset sales and streaming partnerships in an attempt to right the ship. BET is valued at $1.6 billion-$1.7 billion, which is much lower than the $3.5 billion media mogul Byron Allen offered last year.