Media veteran Edgar Bronfman Jr. has reportedly made an 11th-hour $4.3bn bid for Paramount Global, rivalling the previous offer from Skydance Media and RedBird Capital.
With one day to go before the official August 21 close of the “go-shop” window allowing Paramount Global’s special committee to consider “superior” bids, Bronfman Jr. is understood to have offered $2.4bn for Shari Redstone’s National Amusements, owner of a controlling interest in Paramount Global.
The proposal includes a $1.5bn balance sheet injection and a $400m payment to cover a termination fee Paramount Global would pay Skydance Media were it not to consummate the previously agreed transaction with David Ellison’s company.
Bronfman Jr., executive chairman of the sports streaming platform Fubo and former CEO of Seagram, vice-chairman of Vivendi Universal, and CEO of Warner Music, was first reported to be interested in Paramount Global in June.
His bid is understood to be backed by a consortium of investors including Hollywood producer Steven Paul.
It is not as complicated as the Skydance proposal, which would see Ellison buy Redstone’s controlling stake and merge with Paramount Global in a transaction valuing Skydance at $4.75bn.
That scenario has drawn the ire of some Paramount Global shareholders who feel the company is being undervalued.
Redstone gets the final say on who will buy her company. If the Bronfman Jr. bid is appealing, the special committee can extend the “go-shop” period to September 5.
Paramount’s special committee had no comment at time of writing.
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