Paramount Global (the “Company” or “Paramount”) has issued a notice regarding anticipated upcoming restrictions on the ability of its directors and executive officers to engage in certain activities regarding Paramount equity securities. These restrictions are due to a “blackout period” that is also impacting the Paramount Global Class A Stock Fund and the Paramount Global Class B Stock Fund in the Paramount Global 401(k) Plan.
The blackout period is occurring in connection with the anticipated closing of the transactions contemplated by the Transaction Agreement, dated as of July 7, 2024, among Paramount, Skydance Media, LLC, New Pluto Global, Inc. (to be renamed Paramount Skydance Corporation upon closing of the Transaction), and the other parties thereto.
The blackout period is expected to begin the week of July 27, 2025, and end the week of August 10, 2025, subject to the closing of the Transaction on August 7, 2025. However, the actual closing date of the Transaction remains subject to possible change at this time, which may impact the blackout period dates.
During the blackout period, directors and executive officers of Paramount are prohibited from directly or indirectly purchasing, exercising, selling, or otherwise transferring Class A Stock, Class B Stock, or other equity or derivative securities with respect to Class A Stock or Class B Stock. This trading prohibition also applies to Paramount Skydance Stock after the closing of the Transaction.
Plan participants in the Paramount Global 401(k) Plan will be unable to direct or diversify the assets held in their account in the Funds, as well as obtain a loan, withdrawal, or distribution from the Plan if the participant has any portion of their account invested in the Paramount Global Class A Stock Fund or the Paramount Global Class B Stock Fund.
The Company has determined that, due to events that were unforeseeable to it, or circumstances that were beyond its reasonable control, it was not able to provide advance notice of the foregoing restriction with respect to the Plan in accordance with Section 306 of the Sarbanes-Oxley Act of 2002.
These trading restrictions are separate from, and in addition to, any other trading restrictions that may be applicable to directors and executive officers, such as the restrictions on trading under the Paramount Global Insider Trading Policy or its successor.
Given the applicable rules and the short time period involved, the Company recommends that directors and executive officers avoid any change in their beneficial ownership of Paramount or Paramount Skydance Corporation equity and derivative securities during the blackout period. As a result of these announcements, the company's shares have moved -1.58% on the market, and are now trading at a price of $13.05. If you want to know more, read the company's complete 8-K report here.
