Wells says Skydance’s revised offer for Paramount ‘a compelling opportunity’

Wells Fargo analyst Steven Cahall notes that according to reports, Skydance has revised its offer for Paramount, including an option for some non-voting shares to be cashed out at $15/share. Details are to be determined, but the firm would guess the buyout will be pro-rata. The press also says Paramount’s directors have endorsed Skydance’s offer, which includes $3B for shareholders in cash plus debt repayments. It’s unclear if the $15/share offer is encapsulated within the $3B cited, Wells adds. The firm believes $15/share for Bs seems like “a compelling opportunity for Shari Redstone to sell to Skydance, make everyone reasonably happy and maintain the Paramount legacy.” This week could mark the conclusion of a lengthy process, contends Wells, which has an Equal Weight rating and a price target of $14 on the shares.