Billionaire Mario Gabelli Considers Remaining Investor in Paramount-Skydance Merger

Billionaire investor Mario Gabelli may remain an investor in Paramount if the media giant merges with Skydance, despite his earlier skepticism about such a tie-up. In an exclusive interview with The Post, Gabelli praised Shari Redstone for her handling of the proposed merger and expressed interest in the new deal structure.

Under the new arrangement, National Amusements, the holding company that controls Paramount’s voting shares, is not mandating that the merger be approved by a majority of non-Redstone shareholders. Gabelli, a key voting shareholder in the holding company, sees this as a positive development for minority shareholders, including himself.

While Gabelli has not yet formed an opinion on the merger, he noted that the numbers appear favorable, with Skydance offering $1.75 billion for National Amusements. This could potentially result in $20 per share for National Amusements shareholders.

Gabelli also mentioned the potential challenges of getting the deal through the Federal Communications Commission, as a change of 25% of ownership requires FCC approval. Despite this hurdle, the merger with Skydance could bring together two major players in the entertainment industry.

The century-old Paramount Pictures, known for iconic films such as “Titanic” and “The Godfather,” has been a target for Skydance CEO David Ellison, who has spent months pursuing the merger. Redstone initially rejected the deal but later accepted a revised offer that provided more money for other shareholders.

As the media landscape continues to evolve, the potential merger between Paramount and Skydance could have significant implications for the entertainment industry. Gabelli’s stance as a key investor adds an interesting dynamic to the ongoing negotiations, and his decision on whether to remain an investor could impact the future of both companies.