The closing deadline for Paramount Global and Skydance Media’s pending $8 billion merger has been automatically extended to July 6 as the Federal Communications Commission’s regulatory review of a required transfer of broadcast licenses remains ongoing.
Under the terms of the agreement outlined in an S4 prospectus filed with the U.S. Securities and Exchange Commission, the deal was initially set to close by Monday. The deal is subject to two automatic 90-day extensions, which are triggered when “all of the conditions of the closing, except those relating to regulatory approvals, have been satisfied or waived.”
If the deal is not closed by July 6, the deadline will be automatically pushed another 90 days to Oct. 4. If the deal is not closed by either of those dates, a regulator blocks the merger or one of the parties involved breaches the terms of the agreement, then either party will have the option of terminating the deal. Exercising that option would leave Paramount on the hook to pay Skydance a $400 million breakup fee.
The deal has already received approval from the U.S. Securities and Exchange Commission as well as the European Commission. The FCC typically aims to review applications within 180 days, though the timeline is informal and can be paused if necessary. The deal is currently on day 143, per the FCC’s tracker on its website.
More to come…
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