The future of Paramount Global is still up in the air, with a number of competing offers being thrown into the mix. Edgar Bronfman Jr. recently made a bid for Shari Redstone’s National Amusements, the controlling shareholder of Paramount, initially offering $4.3 billion. However, shortly after, Bronfman upped the ante with a revised offer of $6 billion, looking to supersede Paramount’s merger agreement with Skydance Media.
In response to Bronfman’s bid, Paramount’s special committee extended the “go shop” period by 15 days to review the offer. The committee confirmed the receipt of the acquisition proposal from Bronfman and his consortium of investors, allowing them more time to consider whether the bid constitutes a Superior Proposal. During the initial “go shop” period, the committee reached out to over 50 third parties to gauge potential acquisition interest.
The competing bids have sparked interest and concern among shareholders. The Skydance buying consortium, which includes RedBird Capital Partners and KKR, has agreed to invest over $8 billion into Paramount. This deal would give National Amusements an enterprise value of $2.4 billion, with $1.75 billion in equity. As part of the Skydance deal, Paramount’s class A shareholders would receive $23 apiece in cash or stock, while class B shareholders would receive $15 per share.
Bronfman’s Offer Details
Bronfman’s original bid proposed buying National Amusements in an equity deal valued at $1.75 billion, along with a $1.5 billion investment into Paramount’s balance sheet. The revised offer now includes $1.7 billion for a tender offer that would give non-Redstone, nonvoting Paramount shareholders the option to receive $16 a share. Bronfman’s background includes running Warner Music and liquor company Seagram, as well as serving as the executive chairman of Fubo TV since 2020.
Legal Challenges
The merger agreement between Paramount and Skydance has faced legal challenges from shareholders. Money manager Mario Gabelli and investor Scott Baker have reportedly filed lawsuits regarding the deal. Gabelli is seeking access to Paramount’s books related to the Skydance deal, potentially as a precursor to a lawsuit challenging the agreement. Meanwhile, Baker is attempting to block the deal, arguing that it would result in significant losses for shareholders.
The uncertain future of Paramount Global remains in limbo as competing offers and legal challenges complicate the merger landscape. Paramount’s special committee will need to carefully consider all aspects of the various bids in order to make the best decision for the company and its shareholders. The outcome of this situation will not only impact the future of Paramount, but also the broader media and entertainment industry as a whole.