Edgar Bronfman Bids $4.3B for Paramount

Veteran media executive Edgar Bronfman Jr. has submitted a bid of approximately $4.3 billion to acquire Paramount Global by purchasing National Amusements, the family holding company that controls the media giant. This move poses a significant challenge to a previously arranged acquisition by tech entrepreneur David Ellison and his company, Skydance Media. Bronfman’s proposal includes $2.4 billion in debt and equity aimed at National Amusements. Last month, Skydance and its partners reached an agreement to acquire Paramount, which involved buying out the Redstone family's controlling stake and merging it into the publicly traded company. This deal included a 45-day “go-shop period” allowing Paramount to consider other offers, with a stipulation that if they choose a different bidder, they would owe Skydance a $400 million break-up fee. Bronfman contends that his offer is more advantageous as it avoids the complexities of Paramount acquiring Skydance. A special committee of Paramount’s board is scheduled to meet on Wednesday to assess the viability of Bronfman’s bid. There is potential for the committee to extend the go-shop period to September 5, allowing more time to evaluate the competing offers. The Wall Street Journal first reported on Bronfman’s bid, while a spokesperson for Paramount’s board declined to comment on the situation. Bronfman, who has a long history in the media industry, had previously considered acquiring National Amusements before Paramount's agreement with Skydance was finalized, although he did not submit an offer at that time.