The hammer is ready to fall on Paramount

Media investor Mario Gabelli on what he wants from Shari Redstone.

Business leaders are fond of saying, “It’s business as usual” when their companies are in the throes of an ownership change. But if you believe that, you’re in for a rude awakening. The hammer is about to come down hard at 1515 Broadway.

CNBC’s David Faber reported on the Skydance Media plan for Paramount on air on Thursday. The offer is to, “radically restructure Paramount and massively cut costs to get the stock to multiples of its current price. That’s what Shari has signed off on,” he told viewers.

If you are just getting caught up, David Ellison’s Skydance Media is currently in exclusive talks with Shari Redstone’s National Amusements for a two step process that would hand over control of Paramount Global. Skydance is backed by private equity firm Redbird Capital and has a 30 day exclusive negotiating window.

An alternative entrant, Apollo Global, rumored to be backed by Saudi cash, has also signaled an $27 billion bid for the whole thing but was rebuffed. Read more here.

Shari Redstone seems much less interested in Apollo Global. A person close to talks told me, she is afraid that a private equity bid would tear her company apart and is much more in favor of a Skydance agreement that would let her keep some voting shares, would wring out costs and see a better performing stock.