Apex Capital Trust Challenges Skydance Media with $43 Billion Bid for Paramount Global

Apex Capital Trust has launched a competing offer to acquire Paramount Global in an all-cash deal valued up to $43 billion, the investment firm announced on Wednesday. This bid sets the stage for a potential bidding war following Paramount’s initial merger agreement with David Ellison’s Skydance Media.

According to the New York Post, Paramount Global is currently in a 45-day “go-shop” period. This timeframe allows the company to entertain and potentially accept superior offers beyond the existing merger agreement with Skydance. Apex Capital Trust, a prominent holding company in the finance sector owned by David Baker, has seized this opportunity by proposing to acquire all stock held by National Amusements, the Shari Redstone family company that controls Paramount.

Related: Paramount Global Investor Sues to Block Skydance Media Merger

Apex’s offer is notably attractive. It includes $23.28 per share for the non-voting Class B shares of Paramount, representing a substantial 33% premium. Moreover, the firm is willing to assume Paramount’s considerable $15.8 billion debt and cover the $400 million break-up fee to Skydance. Additionally, Apex has pledged to inject $10 billion in working capital into the media giant to support its strategic business plans.

Tatiana Logan, Apex Trust’s General Counsel, emphasized the value Apex sees in Paramount. “Paramount and its assets are a national treasure, and we intend to treat them accordingly,” Logan stated.

Per the New York Post, Apex’s bold proposal adds a layer of complexity to the future of Paramount Global. With the “go-shop” period ticking away, it remains to be seen whether other bidders will emerge or if Skydance will counter Apex’s ambitious offer. This development underscores the high stakes and dynamic nature of mergers and acquisitions in the media sector.

Source: New York Post