Paramount Global’s special committee is taking a long look at a revised $6bn offer for the media conglomerate by industry veteran Edgar Bronfman Jr. and has extended the “go-shop” window by 15 days to September 5.
The committee always had the option to extend the deadline, which was due to expire tonight. This is an indication it views Bronfman Jr.’s 11th-hour offer seriously enough to press pause on the previously agreed merger with David Ellison’s Skydance Media.
According to reports Bronfman Jr. has increased the offer by $1.7bn from the original $4.3bn proposed.
It is understood the additional sum will be used to buy out a number of shareholders, most of whom it is understood are non-voting, at $16 a share.
In his offer backed by RedBird Capital, Ellison offered $15 a share, although he allocated the significantly larger amount of $4.5bn.
Bronfman Jr.’s proposal would pay $2.4bn for Shari Redstone’s National Amusements, owner of a controlling interest in Paramount Global, inject $1.5bn into the balance sheet to pay down debt, and put up $400m payment to cover a termination fee Paramount Global would pay Skydance Media were it not to consummate that deal.
Reports on Wednesday said Bronfman Jr.s offer is backed by a consortium comprised of Hollywood producer Steven Paul, crypto investor Brock Pierce, Fortress Investment Group, and industry executives John Martin and Jon Miller.
Should the special committee deem Bronfman Jr.’s offer superior to that of Ellison, the latter could come back with a revised bid.
Redstone will get the final vote on where the company ends up.
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