Even when you think it’s over, Skydance Media’s potential buyout of Paramount Global isn’t. Paramount now has the right to search for a better offer in the next 45 days. If the company accepts another offer, it will owe Skydance a $400 million breakup fee.
Skydance founder and CEO David Ellison told investors about the fee on a call Monday morning. A special committee composed of Paramount’s board of directors will be able to “actively solicit and evaluate alternative acquisition proposals” during this 45-day window. This shop clause was added as an alternative to giving Paramount Global’s nonvoting shareholders approval over the deal.
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