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In a dramatic turn in the battle for control of Paramount Global, veteran media executive Edgar Bronfman has increased his offer to $6 billion to acquire the controlling interest held by National Amusements, as well as a minority stake in Paramount. This revised bid, reported by Reuters, significantly surpasses Bronfman’s previous offer of $4.3 billion.
Following the announcement, shares of Paramount Global saw a notable increase of over 2.4% after market hours. Paramount confirmed on Wednesday that it had received a new acquisition proposal from Bronfman, representing a consortium of investors. However, the company did not disclose specific details of the offer.
Bronfman’s enhanced bid places him in direct competition with Skydance Media, led by tech entrepreneur David Ellison. Skydance’s current offer, valued at $8.4 billion, involves a complex two-step transaction where Paramount would acquire Ellison’s smaller media company through an all-stock deal. Skydance and its partner, RedBird Capital Partners, have committed $4.3 billion to purchase Paramount’s Class B shares at $15 each and have pledged an additional $1.5 billion to bolster the company’s balance sheet.
Bronfman’s updated proposal includes $3.2 billion allocated either to reduce Paramount’s debt or to buy out non-voting shares held by other investors, with a cash offer of $16 per share. This move would also cover a $400 million break fee owed to Skydance if his bid succeeds. Bronfman’s group argues that their offer presents a less risky alternative compared to the complexities of merging Paramount with Skydance.
Read more: Warner Bros Discovery and Paramount Global Face Mounting Concerns Over Proposed Merger
The Bronfman-led investor group, which includes Fortress Investment Group and Inclusive Capital Partners founder Jeff Ubben, has also seen a reshuffle, with cryptocurrency entrepreneur Brock Pierce and Kazakhstan investor Nurali Aliyev dropping out from the latest revisions.
A special committee of Paramount’s board has extended the deadline for reviewing Bronfman’s proposal to September 5, allowing time for any counter-offers from Ellison’s group. The Wall Street Journal first reported the details of Bronfman’s improved offer.
As the bidding war intensifies, the future of Paramount Global remains uncertain, with both offers representing substantial changes to the media landscape.
Source: Reuters
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