Mergers, Acquisitions and Divestitures

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      The Stranger in Seattle Gets a New Owner, With Plans for Expansion

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      Noisy Creek, a new media company, has bought The Stranger and The Portland Mercury, two of the country’s best known alternative weeklies.For decades, many American cities had at least one thriving alternative-weekly newspaper chronicling the local art and music scene and reporting on the community.Many of those publications withered in recent years, but two of the country’s best known alt-weeklies, The Stranger in Seattle and The Portland Mercury, now have plans for expansion.Noisy Creek, a new company put together by Brady Walkinshaw, a former chief executive of the nonprofit climate news website Grist and a former Democratic legislator in Washington State, said on Tuesday that it had purchased The Stranger and The Portland Mercury, as well as the events site EverOut and the ticketing business Bold Type Tickets, from Index Newspapers.Mr. Walkinshaw declined to disclose the financial details of the purchase, but he said that he was the majority shareholder. Index will keep a 20 percent stake in the company. A group of about 20 individual investors helped finance the deal, Mr. Walkinshaw said.Mr. Walkinshaw said he planned to hire more people and grow the editorial budgets at the publications. He also said that all of the current employees had been offered jobs at the new company. Hannah Murphy Winter, a former Rolling Stone editor, will become the editor in chief of The Stranger.“Alternative weeklies at their best can really, in an edgy, provocative way, be the gateway to what people do culturally in a community, whether it’s music, art, performance,” Mr. Walkinshaw said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Founder of Kakao, South Korean Tech Giant, Arrested Over K-Pop Deal

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      Kim Beom-Su, the billionaire behind Kakao, was taken into custody on Tuesday on allegations of stock manipulation during a bidding war over a major K-pop agency.The billionaire founder of South Korean technology giant Kakao, Kim Beom-Su, was arrested on Tuesday on allegations of stock manipulation related to the company’s investment in one of the country’s largest K-pop agencies.A high-profile bidding war broke out over the agency, SM Entertainment, early last year. Prosecutors allege Kakao manipulated SM Entertainment’s stock price to hinder Hybe, the company behind BTS, from acquiring the agency, whose roster of artists includes Girls’ Generation.Last year, prosecutors indicted Kakao’s chief investment officer and the company itself on stock manipulation charges. The Seoul Southern District Court confirmed that Mr. Kim had been arrested on Tuesday morning.Mr. Kim, who has not been formally charged, has denied the allegations.In a statement released last week, Kakao said that during a company meeting, Mr. Kim had said, “The allegations are not true. I have never instructed or condoned any illegal acts.”Asked for comment about Mr. Kim’s arrest, a Kakao spokeswoman said that “the current situation is unfortunate.”Kim Beom-su is a founder of one of South Korea’s biggest technology companies, Kakao.Agence France-Presse, via Getty ImagesKakao’s messaging and payment apps have become crucial infrastructure in South Korea, and the company is worth about $13 billion in market value. KakaoTalk, a messaging app, is installed on over 90 percent of phones in South Korea.The deal with SM Entertainment was intended to help Kakao establish a foothold in K-pop and expand abroad, tapping the South Korean culture wave. Around the time of the deal, Kakao said the investment would help accelerate its “vision of going ‘Beyond Korea’ and ‘Beyond Mobile.’” More

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      Google Close to Its Biggest Acquisition Ever, Despite Antitrust Scrutiny

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      The search giant’s negotiations to buy Wiz, a cybersecurity start-up, for $23 billion, come as the Biden administration has taken a hard line against consolidation in tech and other industries.Google, which became one of the world’s the most valuable companies through its search engine and other consumer internet services, is nearing its largest-ever acquisition to improve what it can offer to business customers.Google is in talks to buy Wiz, a New York-based cybersecurity start-up, according to three people with knowledge of the discussions, who were not authorized to discuss them. Wiz was last valued at $12 billion.The companies have valued the deal at roughly $23 billion, said one of the people, easily making it Google’s most expensive acquisition and nearly double what the company paid for Motorola Mobility in 2012.While a deal looks likely, talks could still fall apart, the people said.Google and Wiz did not respond to requests for comment. The Wall Street Journal earlier reported that the companies were discussing a deal.Google has moved forward with negotiations despite the possibility that regulators might try to block the deal. But the company may be willing to fight to beef up its cloud-computing division, which lags behind Amazon Web Services and Microsoft Azure.Google was sued by the Justice Department in two separate antitrust cases, one targeting its ubiquitous search engine and another seeking to break up its digital advertising-technology business. A verdict in the search case is expected this summer.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Skydance Reaches Deal to Merge With Paramount

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      The deal, approved by Paramount’s board, ushers in a new chapter for the company, which owns CBS and the movie studio behind “Top Gun.”Paramount’s board on Sunday signed off on a deal to merge with Skydance, according to two people familiar with the negotiations, ushering in a new era for CBS, Nickelodeon and the film studio behind the “Top Gun” and “Mission: Impossible” franchises.The deal is a turning point for the Redstone family, whose fortunes have been intertwined with the rise and fall of the traditional entertainment industry during the decades of its tumultuous ownership of Paramount and its predecessors. Ms. Redstone, Paramount’s board chair, is cashing in much of her ownership in the company she fought to preserve and control.The merger will anoint a new mogul in Hollywood. David Ellison, the tech scion behind Skydance, will become the top power broker at Paramount. The deal is in some ways the story of media writ large, with a family that made its fortune in traditional entertainment largely replaced by one enriched by technology — Mr. Ellison is the son of the Oracle founder Larry Ellison. The Ellisons’ considerable resources was a major selling point for the Redstones, who were seeking to fortify Paramount for the long-term.In recent years, Paramount has become the poster child of a traditional media industry that has been limping along in the shadows of the streaming giant Netflix and tech companies like Amazon, which have plenty of cash to spend on their media bets. Paramount has tried to replace its fading cable TV enterprise with streaming businesses like Paramount+, but those efforts are still nowhere near as profitable as traditional TV operations.The full value of the merger was not immediately clear because the deal is complex. Skydance and its financial backers will acquire National Amusements, the company that holds the Redstone family’s voting stock in Paramount, for roughly $1.75 billion. Paramount is also merging with Skydance, leaving the studio and its backers in charge of a media empire that includes film, TV and news properties.Paramount’s market capitalization — the value the stock market places on the company — is around $8.2 billion. Skydance’s last disclosed valuation was north of $4 billion.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Meet David Ellison, the CEO of Skydance and Paramount’s New Owner

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      He left college to try out acting. Now, he’s set to become one of the most powerful people in Hollywood.David Ellison’s Hollywood career has been defined by high-octane blockbusters filled with suspense, stunts and improbable plot twists.But on Sunday he landed his biggest cliffhanger yet, striking a deal to merge with Paramount after months of negotiations with the company and its controlling shareholder, Shari Redstone. If the deal closes, he will be in charge of a sprawling media empire that includes CBS, MTV and the Paramount movie studio.Though Mr. Ellison, 41, joined the cast of Hollywood’s power players more than a decade ago, he hasn’t taken center stage until now. Here’s a look at his career.Who is David Ellison, and what is his company, Skydance?A quick perusal of Mr. Ellison’s page on the Internet Movie Database shows a relatively undistinguished acting career, with minor roles in films like the fighter drama “Flyboys” and teen comedy “The Chumscrubber” (in which he played “Student No. 1”). It wasn’t until he became a producer that his star in Hollywood began to rise.After he dropped out of the University of Southern California and gave up on acting, Mr. Ellison turned to producing. His family’s considerable influence — he is the son of the Oracle founder Larry Ellison — helped him bankroll big-budget films like “Mission: Impossible — Ghost Protocol” and “Star Trek Into Darkness.”Along the way, the valuation of Mr. Ellison’s company Skydance Media ballooned to more than $4 billion, after private-equity firms like RedBird Capital Partners and KKR invested in it. Mr. Ellison, the chief executive of Skydance, has co-produced hits like “Top Gun: Maverick” and “G.I. Joe: Retaliation” with Paramount, giving him an entree to the company’s executives and its most valuable franchises.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      A Sticking Point in Paramount and Skydance Talks: Who Pays For a Lawsuit?

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      A special committee of Paramount’s board of directors supports a merger with Skydance, a studio that has increased its offer in recent days. But the deal isn’t done yet.Paramount and Skydance have haggled for months over an ambitious merger that would usher in a new ruler of a sprawling media kingdom that includes CBS, MTV and the film studio behind “Top Gun.”The talks reached an even greater intensity in the past week, but at least one major sticking point has emerged between Shari Redstone, Paramount’s controlling shareholder, and Skydance. In the event that Paramount’s investors sue over the merger, which party is on the hook to defend the deal in court?National Amusements, the parent company of Paramount, wants Skydance to provide legal protection in the event of a lawsuit, warding off shareholders that may file objections to the merger, according to three people familiar with the matter. Skydance has not yet signed off on that deal term.Legal protection — also known as indemnification — is among the crucial outstanding terms in this deal, which has already been condemned by some Paramount shareholders who protested that it would enrich Ms. Redstone at the expense of other investors.The deal could still fall through. There are several outstanding issues in the negotiations between Skydance and Paramount, which have recently resumed talks. A special committee of Paramount’s board of directors supports a deal with Skydance. (Puck reported earlier that the special committee had greenlit the deal.)Another issue that has yet to be settled is whether Paramount will be given a “go-shop” period to see if it can get a superior offer to the Skydance deal or submit the deal to a shareholder vote, according to two people familiar with the matter. A shareholder vote and a “go-shop” period would protect Paramount and National Amusements from lawsuits, but it could prolong the deal-making process.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Adam Neumann Gives Up on Buying Back WeWork

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      The co-founder of the shared-office company, who stepped down under pressure before the firm went bankrupt, announced an audacious takeover bid earlier this year.Adam Neumann has officially admitted defeat in his quest to buy back WeWork, ending his bid to acquire the co-working company that he helped found in 2010 and built into a global enterprise valued at $47 billion before it fell into bankruptcy last year.“For several months, we tried to work constructively with WeWork to create a strategy that would allow it to thrive,” Mr. Neumann said in a statement to the DealBook newsletter. “Instead, the company looks to be emerging from bankruptcy with a plan that appears unrealistic and unlikely to succeed.”The writing was on the wall for weeks. Mr. Neumann stepped down as WeWork’s chief executive in 2019 under pressure from directors and investors, after the company failed to go public amid questions about its business model and corporate governance. It marked a stunning fall for Mr. Neumann, the company’s charismatic frontman.But in February, DealBook reported that Mr. Neumann was planning an audacious move to buy back the company.His new real estate company, Flow, which is backed by Andreessen Horowitz, the venture capital firm, offered more than $500 million. The plan was to buy WeWork or its assets, and inject bankruptcy financing to keep it afloat.But WeWork found a different lifeline. A U.S. bankruptcy judge last month approved a restructuring deal that essentially wiped out $4 billion in company debt. It also included $450 million in new funding from SoftBank, the Japanese technology investor that has backed WeWork from its early days, enabling it to exit Chapter 11 bankruptcy.WeWork has been busy renegotiating leases in an effort to shed $11 billion in rent obligations. The rise of hybrid work since the coronavirus pandemic has hit the commercial real estate sector hard. A surge in vacancies has helped companies like WeWork rework deals with landlords, but has also cast doubts over the growth potential of the shared-office business model. More

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      Stanley Goldstein, Who Helped Make CVS a Pharmacy Giant, Dies at 89

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      The small chain that he, a brother and a third partner opened in 1963 had become the nation’s largest by the time he retired as its chief executive three decades later.Stanley P. Goldstein, who in the early 1960s helped start a retail chain named Consumer Value Stores, which, after shortening its name to CVS — because, he said, fewer letters meant cheaper signs — grew into the largest drugstore chain in the United States, died on Tuesday at his home in Providence, R.I. He was 89.The company, which is headquartered in Rhode Island, announced his death. Family members told The Providence Journal that the cause was cancer, diagnosed about a month ago.Mr. Goldstein was frequently described as informal and no-nonsense — much like the airy, brightly lit outlets that he, a brother and a third founder opened in 1963 to sell cut-price toothpaste, aftershave, Band-Aids and other personal care products.When he retired as chief executive in 1998, the company had more than 4,000 stores. Today, it has more than 9,000 outlets in the United States and its territories, and its revenues are larger than those of Exxon Mobil, Microsoft and Ford.Mr. Goldstein, who graduated from the Wharton School at the University of Pennsylvania in 1955, at first had little enthusiasm for retail sales, a business that he knew, from the experience of his father, Israel Goldstein, was cutthroat. Instead, he became a stockbroker.But when Mr. Goldstein’s father died, his brother Sidney persuaded him to help take over the father’s struggling enterprise, which had begun by selling bags and other paper products to grocery stores and had branched out to offer sundry health and beauty aids, displayed near the cash registers.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More