Paramount Global and its controlling shareholder, the Redstone family’s National Amusements, reportedly have agreed to terms of a deal that would combine Paramount with Skydance Media, which is backed by private equity.

According to CNBC, Shari Redstone would receive $2 billion for National Amusements, which has 77% of the voting power over Paramount.

The deal also puts some cash in the pockets of other Paramount stockholders, with Skydance paying $15 a share for about half of the outstanding class-B Paramount shares. 

Skydance and private-equity company RedBird Capital will also put $1.5 billion in cash into Paramount, reducing its debt.

According to CNBC, the deal leaves Skydance and RedBird owning two-thirds of Paramount, with class-B shareholders owning the remaining third.

Paramount holds its annual meeting of shareholders on Tuesday.

Redstone has favored a deal with Skydance, run by David Ellison, son of billionaire Oracle founder Larry Ellison.

Other bidders have made offers for Paramount, including Sony Pictures Entertainment, working with Apollo Global Management. 

Paramount Global’s stock jumped more than 12% in Friday morning trading amid reports of a possible takeover bid for the media company.

Multiple reports have said that Skydance Media and RedBird Capital Partners have been kicking the tires on Paramount, which is controlled by Shari Redstone and the Redstone family holding company National Amusements.

National Amusement’s controlling shares in Paramount are worth about $1 billion, according to Wells Fargo analyst Steven Cahall.

“We see a decent possibility a deal gets done,” said Cahall, who expects new ownership to begin divesting parts of the company.

Paramount stock has been under pressure because of its shrinking broadcast and cable networks and its lack of scale in the streaming business.

Cahall said he doesn’t think strategic buyers like Warner Bros. Discovery or Comcast would be interested in Paramount as a whole. 

But Skydance or RedBird might try to create value by selling Pluto TV, which could fetch $1.7 billion or its linear networks, worth about $16 billion. They might also shut down the streaming service Paramount Plus, according to Cahall.

“Over the years we've witnessed Skydance grow from a co-producer on the Paramount lot focused on sci-fi/action to a diversified studio incl. animation, sports and a portfolio of big-budget films and original series. We think founder David Ellison has the gravitas to court NAI alongside the deal-making expertise of Redbird,” Cahall said.

Cahall said making a deal will be up to Redstone, whose father media mogul Sumner Redstone built the company.

“We think the probability of a deal is decent given Skydance is a credible buyer, Paramount recently announced senior exec change of control packages and Ms. Redstone may have grown tired of Wall Street's drumbeat of media negativity and familial intrigue,” Cahall said.

None of the companies involved have commented.

The National Football League has entered into a joint venture with private equity firm RedBird Capital Partners to stream ”NFL Sunday Ticket“ in bars, restaurants and other public dining and entertainment establishments, starting this upcoming football season. 

The JV, called EverPass Media, will become the exclusive commercial distributor of NFL Sunday Ticket and could potentially also distribute other live sporting events down the road. 

EverPass will be led by Derek Chang and Alex Kaplan, who notably worked closely with the NFL on Sunday Ticket while employed by incumbent distributor DirecTV. 

For its part, DirecTV, which just ended a decades-long partnership with the NFL for the residential Sunday Ticket business, said it's still in play to retain the commercial side of the out-of-market regular-season games package. 

“DirecTV delivers market-leading sports content to bars, restaurants and other commercial establishments across the U.S. including exclusive access to MLS Season Pass and MLB Friday Night Baseball, as well as Thursday Night Football, with more games and leagues on the horizon. We are in discussions with RedBird Capital to deliver NFL Sunday Ticket to our 300,000-plus commercial venues as only satellite can provide a consistent and reliable experience in venues and across locations that fans have come to expect," DirecTV said in a statement sent to Next TV Tuesday night. 

In December, Google/Alphabet entered into a multiyear agreement to take over the residential Sunday Ticket, paying from $2 billion to $2.5 billion to sell the add-on package through its YouTube TV virtual pay TV service. 

According to The Wall Street Journal, which first reported the RedBird deal, the commercial Sunday Ticket contract is worth around $200 million a season. And DirecTV, which has carried the package since it debuted in 1994, had hoped to retain the commercial business. ■

About four months after starting talks with the Canadian Football League about a possible collaboration, the XFL said it has put those discussions on hold and looks toward starting play in the 2023 season.

The XFL said in March that it had begun discussions with the Canadian league to “identify opportunities for the leagues to collaborate, innovate, and grow the game of football.” As a result, the XFL said it would postpone its 2022 season. 

News that the talks had ended was first reported by Sports Business Journal. 

Speculation was high that the two leagues were exploring a possible merger. Last year, former CFL player, professional wrestler and current movie star Dwayne “The Rock” Johnson, his ex-wife Dany Garcia and RedBird Capital purchased the XFL out of bankruptcy for about $15 million.  With the tabling of the CFL talks, the chances of a possible merger appear slim.   

“Our talks with the XFL, exploring the potential for collaboration and innovation, have been positive and constructive,” the CFL said in a statement on its website. “While we remain open to finding new ways to work together in the future, we and our XFL counterparts have jointly decided to not pursue any formal arrangements at this time.” 

The XFL issued a similar statement.

“While our discussions with the CFL did not ultimately lead to a collaboration, the effort reinforced our belief and commitment to developing the XFL for international spring football,” the XFL said in a statement. “We look forward to seeing everyone for kickoff in spring of 2023.”

Just what is next for the XFL remains in question, especially as another spring football league — the USFL — gears up for its 2022 season, with minority owner Fox Sports as its broadcast partner.

Seven Bucks Companies, the film and TV production entity headed by Dwayne “The Rock” Johnson and his ex-wife Dany Garcia, and RedBird Capital, the private equity company led by former Goldman Sachs partner Gerry Cardinale, have agreed to buy troubled sports league the XFL in a deal valued at about $15 million.

The XFL filed for bankruptcy protection in April, shortly after it canceled its season due to the coronavirus pandemic. At the time, the league reported assets of between $10 million and $50 million. 

The bid came on the day the bankruptcy court was scheduled to begin an auction for the XFL assets. In light of the bid, that auction will not take place.

The XFL, created by World Wrestling Entertainment chairman and CEO Vince McMahon, has struggled to eke out a niche as an alternative to the NFL. While the earlier version of the XFL crashed and burned after one season in 2001 amid low ratings and a string of bad luck, the latest iteration was supposed to be a more serious, fast-paced, fan-centric and family-friendly football league. In June 2018 McMahon hired former NFL and NCAA executive Oliver Luck as commissioner and CEO of the league, and tapped sports business consultant Jeffrey Pollack as president and chief operating officer.

Pollack was in charge of the auction process. In a press release he was pleased with the outcome.

“We are grateful for today’s outcome,” Pollack said. “This is a Hollywood ending to our sale process and it is an exciting new chapter for the league. Dwayne, Dany and Gerry are a dream team ownership group and the XFL is in the best possible hands going forward.”

Johnson and Garcia, a former Merrill Lynch exec, formed Seven Bucks Companies in 2012, which has mainly produced films and television properties for Johnson. This will be the company’s first foray into live sports. 

The deal is expected to close quickly. Seven Bucks said in a press release that the bankruptcy court will hold a hearing to approve the transaction on Aug.7, and with a favorable ruling the deal could close on or shortly after Aug. 21.

“For Dwayne, Gerry and myself, this property represents an incredible opportunity. It is the confluence of great passion, tradition and possibility” Garcia said in a press release. “Sports and entertainment are the foundations of the businesses I have built. Melding our expertise combined with our commitment to deliver exciting and inspiring unique content, has us all focused on developing the XFL brand into a multi-media experience that our athletes, partners and fans will proudly embrace and love.”

Johnson, a former professional wrestler, parlayed his fame into a career as an actor and entrepreneur. In addition to starring in blockbuster films like Jumanji and TV shows like HBO series Ballers, he is CEO of Seven Bucks Cos.

“The acquisition of the XFL with my talented partners, Dany Garcia and Gerry Cardinale, is an investment for me that’s rooted deeply in two things - my passion for the game and my desire to always take care of the fans,” Johnson said in a press release. “With pride and gratitude for all that I’ve built with my own two hands, I plan to apply these callouses to the XFL, and look forward to creating something special for the players, fans, and everyone involved for the love of football.”

Cardinale and RedBird have been involved in several sports deals -- it was part of the team that purchased YES Network last year and last month purchased an 85% interest in French soccer club Toulouse. Also in July, RedBird formed a special purpose acquisition corporation -- RedBall Acquisition Corp. -- with Oakland A’s executive Billy Beane to raise $500 million to invest in sports properties. 

“It is a privilege to partner with Dany and Dwayne on the acquisition of the XFL,” Cardinale said in the press release. “Their track record in building dynamic businesses speaks for itself, and their vision and passion for developing the XFL as a world class sports and entertainment property will enable a new future for this organization. As their partner in acquiring and relaunching the XFL, RedBird will bring its own track record and experience in building world class companies in sports and live entertainment to help realize their vision.”