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Shari Redstone Ends Talks with Skydance Media Over Paramount Control
Shari Redstone has terminated negotiations with Skydance Media regarding a deal that would have transferred control of Paramount from her family to billionaire David Ellison. This decision puts an end to the discussions that have been ongoing for months, leaving the future of Paramount uncertain.
Skydance had proposed a $2 billion acquisition of Redstone’s National Amusements (NAI) and planned to merge Paramount with Ellison’s company through a stock deal. This offer included buying out approximately half of Paramount’s common shareholders at $15 per share and injecting $1.5 billion to help pay off the company’s debt.
However, NAI announced that they were unable to reach mutually acceptable terms with Skydance, and expressed gratitude to Skydance for their efforts in pursuing the potential transaction. A representative from Skydance declined to comment on the situation. Following this news, Paramount’s shares fell by 8% to $11.04.
The decision surprised Ellison’s camp, which included private equity backers RedBird and KKR, as the two sides had appeared close to a deal in recent weeks. Paramount’s special committee, representing all shareholders’ interests, had given a non-binding endorsement of the bid earlier this month.
Redstone’s change of heart was partly due to Skydance lowering the amount of cash that would have gone to NAI while increasing the payout to other shareholders.
Market Reactions and Future Economic Indicators
Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, showed a downward trend ahead of the stock market opening. GameStop (GME) further plunged on Monday, extending Friday’s losses. Important events this week include the CPI report and the Federal Reserve’s policy meeting.
The May consumer price index is expected to show another 0.3% increase in core prices. The Fed policy update and new economic projections are also due Wednesday. The previous projections indicated a divided stance among policymakers, with a slight majority favoring three quarter-point rate cuts in 2024. The current projections might show a shift with more dovish members supporting two rate cuts while hawkish members back a single rate cut.
Additionally, significant earnings reports from Adobe (ADBE), Broadcom (AVGO), and Oracle (ORCL) are expected this week. GameStop’s stock experienced a sharp decline, closing down 12% on Monday after a significant 50% drop over the last two trading sessions.
Raspberry Pi’s Successful IPO
British PC maker Raspberry Pi saw a significant boost on its first day of trading in London, with shares jumping 38% from its IPO price of 280 pence to close at 385 pence. The stock surged as much as 43% during intraday trading, marking a positive start for the company and offering hope for London’s struggling IPO market.
Raspberry Pi’s successful IPO, which raised £166 million ($211 million), is the largest tech listing in London since Devolver Digital in 2021. The strong demand for Raspberry Pi shares, evidenced by the oversubscription and top-end pricing, suggests investor confidence in the company.
The Cambridge-based company, known for its low-cost computers popular among hobbyists and educators, now has a market capitalization of approximately £542 million. This IPO is seen as a much-needed boost for the UK capital markets and could potentially pave the way for more tech companies to list domestically.
Market Update: US, Europe, Asia, Commodities, and Forex
US Markets
The US markets have shown mixed results, with significant movements across key indices. The Dow Jones Industrial Average (DJIA) saw a slight decline, closing at 38,747.42, down by 0.31%. Conversely, the NASDAQ Composite Index (COMP) experienced an increase of 0.88%, ending at 17,343.55. The S&P 500 Index (SPX) also reported a positive change, rising by 0.27% to close at 5,375.32. The Global Dow (GDOW) witnessed a marginal decline of 0.06%, settling at 4,665.22.
| Index | Last | Change | Change % |
|---|---|---|---|
| Dow Jones (DJIA) | 38,747.42 | -120.62 | -0.31% |
| NASDAQ Composite | 17,343.55 | +151.02 | +0.88% |
| S&P 500 (SPX) | 5,375.32 | +14.53 | +0.27% |
| Global Dow (GDOW) | 4,665.22 | -2.65 | -0.06% |
European Markets
European markets faced a downturn, with major indices reflecting significant losses. The FTSE 100 dropped by 0.98%, closing at 8,147.81. Germany’s DAX fell by 0.68%, ending at 18,369.94. The CAC 40 in France experienced a 1.33% decrease, finishing at 7,789.21. Italy’s FTSE MIB and Spain’s IBEX 35 also saw declines of 1.93% and 1.60%, respectively. The SXXP index dropped by 0.93%, closing at 517.29.
| Index | Last | Change | Change % |
|---|---|---|---|
| FTSE 100 | 8,147.81 | -80.67 | -0.98% |
| DAX | 18,369.94 | -124.95 | -0.68% |
| CAC 40 | 7,789.21 | -104.77 | -1.33% |
| FTSE MIB | 33,874.48 | -667.53 | -1.93% |
| IBEX 35 | 11,175.50 | -181.70 | -1.60% |
| SXXP | 517.29 | -4.87 | -0.93% |
Asian Markets
Asian markets showed a mixed performance. Japan’s Nikkei 225 (JP) declined by 0.81%, closing at 38,816.57. The Hang Seng Index (HK) in Hong Kong dropped by 0.73% to 18,042.93. The Shanghai Composite Index (CN) in China reported a slight gain of 0.36%, closing at 3,031.52. India’s Nifty 50 (IN:1) saw a minimal decline of 0.04%, ending at 76,456.59. The Singapore STI (SG) rose by 0.25%, closing at 3,317.62. Australia’s ASX 200 (AU) fell by 0.72%, ending at 7,699.2, while South Korea’s KOSPI Composite gained 0.27%, finishing at 2,712.61.
| Index | Last | Change | Change % |
|---|---|---|---|
| ADOW | 3,972.17 | -31.59 | -0.79% |
| Nikkei (JP) | 38,816.57 | -318.22 | -0.81% |
| Hang Seng (HK) | 18,042.93 | -133.41 | -0.73% |
| Shanghai (CN) | 3,031.52 | +10.76 | +0.36% |
| Nifty 50 (IN:1) | 76,456.59 | -33.49 | -0.04% |
| STI (SG) | 3,317.62 | +8.41 | +0.25% |
| ASX 200 (AU) | 7,699.2 | -56.2 | -0.72% |
| KOSPI Composite | 2,712.61 | +7.29 | +0.27% |
Commodities
In the commodities market, gold prices saw a modest increase of 0.07%, closing at $2,328.30 per ounce. Crude oil prices also rose by 0.37%, with the price per barrel reaching $78.19.
| Commodity | Last | Change | Change % |
|---|---|---|---|
| Gold (GC00) | $2,328.30 | +1.70 | +0.07% |
| Crude Oil (CL1) | $78.19 | +0.29 | +0.37% |
Forex Market
The forex market displayed slight variations across major currencies. The Euro saw a minimal increase of 0.01%, trading at $1.0742. The Japanese Yen declined by 0.02%, trading at ¥157.09. The British Pound experienced a slight drop of 0.02%, trading at $1.2739. The Australian Dollar rose by 0.11%, reaching $0.6612. The US Dollar Index saw a slight increase of 0.04%, closing at 105.28, while the WSJ Dollar Index decreased by 0.02%, ending at 99.93.
| Currency | Last | Change | Change % |
|---|---|---|---|
| Euro | $1.0742 | +0.0001 | +0.01% |
| Japanese Yen | ¥157.09 | -0.03 | -0.02% |
| British Pound | $1.2739 | -0.0002 | -0.02% |
| Australian Dollar | $0.6612 | +0.0007 | +0.11% |
| US Dollar Index | 105.28 | +0.05 | +0.04% |
| WSJ Dollar Index | 99.93 | -0.02 | -0.02% |
The global markets have experienced a mix of gains and losses across different regions, with significant movements in commodities and forex as well. Investors continue to monitor these changes closely, particularly with upcoming economic indicators and earnings reports that could further influence market trends.