Skydance completed its merger with Paramount on 7 August 2025. Paramount shareholders had a choice for the merger consideration. They could elect an all stock
consideration and received 1.0 shares of Skydance (renamed Paramount Skydance) stock for each PARA share or take an all cash option and receive $15.00 for each PARA share. However, the cash option had a limit on the amount of cash to be paid. If the cash option was oversubscribed, only a fraction of the shares electing the cash option would be redeemed for cash. The cash option was oversubscribed and approximately 60% of the shares in the cash option actually had cash paid. The remainder of the cash election shares were converted to the stock option.
The Paramount Skydance (PSKY) Form S-4/A SEC filing for this merger can be found through the SEC EDGAR web site at:
https://www.sec.gov/Archives/edgar/data/2041610/000119312525025303/d813356ds4a.htm#toc

The companies received an opinion from a law firm that the merger qualifies as a non-taxable reorganization for PARA shareholders electing the stock option. PARA shareholders electing the cash option will have the transaction treated as a taxable sale. We will assume the IRS does not dispute this opinion and will treat this merger as a simple merger. The information below is based on the information available from a form S-4 filed with the SEC. Price information is from websites offering historical prices.

NOTE: The companies state they will endeavor to satisfy the conditions necessary to make this transaction non-taxable and may get legal advice that the transaction qualifies for nontaxable treatment. However, there is the possibility the IRS will disagree with their characterization. These instructions assume the companies succeed in their efforts. New instructions will be written, if and when it becomes known the merger should be treated as a taxable event.

Shareholders had two options for this merger; they could opt to take shares or cash. Since so many shareholders opted to take cash, even those shareholders ended up with some shares of the new company. If you aren't sure which election you made, check the number of shares of the new company that your club has, and the amount of cash you received as part of the merger.

If the club has the same number of shares in the new company as it did in PARA, and received less than 15.00 in cash, you should enter a merger as described in the section just below this.

If the club has fewer shares in the new company, than it did in PARA and received 15.00 or more, you should skip to the Cash Election heading, lower down in this set of steps.

For PARA shareholders taking the stock election, this is a simple merger.

The Merger Entry Go to Accounting > Securities > Record merger of securities in myICLUB. If you are unfamiliar with merger transactions you can get help at this URL:
https://www.myiclub.com/faq/article.aspx?id=52

Here is the information needed to complete the merger entry in myICLUB.

• Step 1
  • Date: 8/7/2025
  • Merging Company: Paramount (PARA)
  • Number of daughter companies : 1 (keep this default)
• Step 2
  • Symbol of new company: PSKY (Paramount Skydance)
  • Shares received : 1.0 x (# of PARA shares owned). (Remember to include fractional shares.)
    • For example, if you owned 100 PARA shares, you should receive 1.0 x 100 = 100 PSKY shares.
  • Price per share: 11.74 (Closing price on 8/7/2025)
  • Cash received: See your broker statement for cash-in-lieu
    • Any fractional share entered will be sold for the cash amount entered as part of the merger transaction. No need to enter a separate sell transaction. If no cash amount is entered, the fractional share will remain in your portfolio.

Save the transaction and the merger has been entered.

PARA shareholders taking the Cash Election

Not all shares tendered for cash received cash. Check your broker statement for how many shares were redeemed for cash. Since not all shares were redeemed for cash, the remaining shares were exchanged for PSKY stock. So, two transactions are needed, a sell transaction followed by a merger transaction.

The Sell Entry

Go to Accounting > Securities > Record sale of security

• Step 1
  • Date : 8/7/2025
  • Symbol : PARA
• Step 2
  • Shares sold : Check your broker statement; This should be approximately 60% of shares tendered for the cash election
  • Sale total : Shares sold x 15
  • Commission and fees : See broker statement, if any
  • Net proceeds : Let myICLUB calculate this.

Click the Submit button to save the sell transaction.

The Merger Entry

Go to Accounting > Securities > Record merger of securities in myICLUB. If you are unfamiliar with merger transactions you can get help at this URL:
https://www.myiclub.com/faq/article.aspx?id=52

• Step 1
  • Date: 8/8/2025
  • Merging Company: Paramount (PARA)
  • Number of daughter companies : 1 (keep this default)
• Step 2
  • Symbol of new company: PSKY (Paramount Skydance)
  • Shares received : 1.0 x (# of PARA shares owned after the sale). (There should be no fractional shares)
    • For example, if you originally owned 100 PARA shares, and 60 were redeemed in the cash election, you should receive 1.0 x (100 - 60) = 40 PSKY shares. Use your broker statement as a check.
  • Price per share: 11.74 (Closing price on 8/7/2025)
  • Cash received: See your broker statement for cash-in-lieu. Since this was a 1 for 1 exchange ratio, there should be no Cash received.