How to read the tea leaves on stalled $8B – Business News
Everyone is studying the tea leaves nowadays on the seemingly endlessly stalled $8 billion Skydance-Paramount deal.
The Wall Street fortune tellers keep in search of clues as to whether or not Paramount heiress Shari Redstone pays President Trump what he needs to settle a $20 billion lawsuit towards its CBS subsidiary?
And if she does, will that be enough to get the deal accredited by his broadcast regulators.
The Wall Street fortune tellers keep speculating as to whether or not Shari Redstone pays Trump what he needs to settle a $20 billion lawsuit towards CBS. Jack Forbes / NY Post Design
On The Money exists at the very least partially to cut by way of the malarkey – and let you know that the newest tea leaves being carefully examined are (as a sure great playwright as soon as mentioned) full of sound and fury, signifying nothing.
One of these tea leaves led to the suggestion that Paramount laid off people earlier this week, a fairly steep 3% of its present workforce, as a result of it’s planning that the deal won’t undergo.
Layoffs of such a magnitude often happen not when two events are about to merge, however long earlier than, or when there may be no deal in the works. The considering is that present management is resizing the business as a result of they plan on working Paramount for the foreseeable future.
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As On The Money was first to report, Paramount’s prime brass – apart from Redstone (she’s recused herself as a result of of the potential payday) – is cautious of the optics of paying off Trump so Shari can stroll away with what’s left of the nest egg left to her by her father, the late merger impresario Sumner Redstone.
They concern it may open the company to bribery fees by settling the frivolous lawsuit – alleging “60 Minutes” deceptively edited an interview with Kamala Harris in the heat of the marketing campaign (Trump gained the election so there’s no damages) – that their administrators and officers insurance coverage doesn’t cowl if some prosecutor introduced a case.
All true, however the layoffs had little to do with the future of the deal, a method or the different, people close the transaction instructed On The Money.
Paramount fears it may open the company to bribery fees by settling the frivolous lawsuit – alleging “60 Minutes” deceptively edited an interview with Kamala Harris in the heat of the marketing campaign. 60 Minutes / CBS
SkyDance had deliberate to own Paramount by now, and was planning the very same cuts to make the numbers work earlier than it may well invest and grow the business, sources mentioned.
With the deal in limbo, Paramount simply did it first so cross that tea leaf off your record.
The second tea leaf is a little more fascinating, although I’m instructed, simply as inconsequential to the deal’s end result.
It includes the look of Skydance boss David Ellison ringside at a UFC 314 combat in Miami a number of weeks in the past with Trump, who was shaking arms and schmoozing with the likes of Joe Rogan and Shaquille O’Neal.
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The tea-leaf-reading speak right here speculated that the deal is back on – Trump can’t wait to approve it as a favor to David’s dad, and Trump bestie, Larry Ellison. Why would Trump be seen with Larry’s child if he had been about to screw him?
Except, guess who else was ringside as Trump made his method by way of the crowd? Elon Musk, yes that Elon who had simply known as Trump some actually nasty names. So nasty that earlier this week, Elon issued a semi-apology. He was sitting along with his son, not removed from the youthful Ellison and Trump.
So cross that one off as properly, deal watchers inform me.
For now, these in search of clues on how this stalemate ends can have to flip over a new tea leaf.
