A fresh contender is presenting a substitute proposal for the media behemoth Paramount Global. Edgar Bronfman Jr., a media investor and US billionaire, made a US$4.3 billion bid to purchase National Amusements, owned by Shari Redstone.
The Wall Street Journal broke this story initially on Monday, August 19. According to media sources, the plan calls for National Amusements to take on US$2.4 billion in debt and equity in addition to US$1.5 billion for Paramount’s financial sheet, which may be used to settle debt.
With a resumé spanning multiple sectors, Bronfman Jr. previously served as chief of the whisky, alcohol and beverage producer Seagram’s in the 1990s, succeeding his father. He also had a seven-year stint as CEO of Warner Music Group (which concluded in 2011) and held the title of vice-chairman of Vivendi Universal.
Currently, he is executive chair of FuboTV’s board, and chairman and co-founder of Waverley Capital, which invests in media companies.
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Paramount implemented a 45-day “go shop” period in early July after Redstone and a special board committee approved a US$8-billion bid from LA’s Skydance Media and its private equity partner RedBird Capital. This period—which is set to end tomorrow (August 21)—allows for the Hollywood giant to evaluate any other takeover offers.
If it ends up approving a rival deal, Paramount has agreed to pay a US$400-million breakup fee to Skydance. Bronfman Jr. would reportedly cover this fee if his last-minute offer is accepted.
Of course, it’s uncertain whether Paramount will take up the businessman’s offer. But according to Bloomberg, one source suggested that the company is “likely” to extend its go shop period given this development.
