Paramount and Skydance extend merger talks by another 90 days as negotiations continue

Paramount Global and Skydance Media have triggered a second 90-day extension in their merger negotiations. The new deadline for the ongoing talks is now set for early October, as both parties continue to work toward finalizing terms of a complex deal that would reshape the future of the storied Hollywood studio.

This move marks the second extension of the exclusive negotiation window, reflecting the intricate nature of the proposed agreement. The initial merger plan, announced earlier this year, envisions Skydance taking control of Paramount through a combination of cash and stock transactions. While specific deal terms have not been publicly disclosed, the discussions are understood to involve both Paramount’s controlling shareholder, National Amusements, and the company’s board, which has been weighing strategic alternatives to address competitive pressures and shareholder concerns.

The additional 90-day extension suggests the parties remain committed to the merger but need more time to resolve outstanding issues, including governance structure, valuation, and integration plans. The negotiation process has already faced scrutiny from investors and analysts, who have raised questions about Paramount’s leadership stability and its ability to navigate a rapidly changing media landscape.

The proposed merger comes at a time when Paramount is under pressure to stabilize its financial performance and accelerate its streaming strategy. In its most recent quarterly earnings, Paramount reported $7.69 billion in revenue, down slightly from $7.79 billion a year earlier, and posted a net loss of $417 million as the company continued investing heavily in Paramount+ and other digital platforms.

Although neither Paramount nor Skydance issued public statements following news of the extension, industry observers note that both companies have a strong incentive to close the deal. Skydance, led by David Ellison, has already co-financed and produced several major Paramount blockbusters, including “Top Gun: Maverick” and entries in the “Mission: Impossible” franchise. The merger would cement that relationship and inject fresh capital and leadership into Paramount at a critical juncture.

With this second 90-day extension, the clock is now ticking toward October for Paramount and Skydance to finalize an agreement that could redefine the company’s position in the global entertainment market. Investors and stakeholders will continue watching closely for updates as negotiations progress.