Bronfman Expected to Bid for Paramount Global by Monday Night

EXCLUSIVE: We have learned that Edgar Bronfman Jr.’s bid for Paramount Global could emerge as soon as tonight, ahead of the 11:59 PM ET deadline on August 21. If a superior offer does not surface by then, Par’s merger with Skydance will become official.

The combination between Skydance and Paramount, valued at around $8 billion and announced in July, included a 45-day go-shop period that allows for extensions in two increments of 15 days each. This extension would be triggered if the special committee of Par’s board of directors finds another offer worth exploring. It’s believed that former Seagram scion and entertainment executive at Vivendi Universal and Warner Music, Edgar Bronfman Jr., may soon enter the fray, potentially tonight or by tomorrow.

While the exact terms of Bronfman’s bid remain unknown, it’s believed that Roku is no longer among the backers. Fortress Investment Group is said to be an investor. Should Paramount decide to leave Skydance’s deal for Bronfman’s offer, the new buyer would need to pay a $400 million breakup fee.

Under the current Skydance transaction, David Ellison’s company would acquire Shari Redstone’s controlling stake in Paramount as well as all Class A and some Class B shares. Following this, Paramount would buy Skydance in an all-stock deal, allowing the company to remain public.

Some sources indicate, although unconfirmed, that Paramount director Charles Phillips supports the Bronfman bid and has been active in seeking financial support for it. Phillips, who chairs the board’s special committee assessing bids, played a role in the initial Skydance offer falling through with Paramount Global in June. However, the two sides later reconciled. Phillips also voted in favor of the recent Skydance deal.

David Ellison’s Skydance company is backed by Oracle co-founder Larry Ellison and Gerry Cardinale’s Redbird Capital. Should a new offer arise, it would still have to be considered by the Par board’s special committee, which had unanimously approved the Skydance merger on July 7. The committee stated then that the company would not disclose details about the go-shop process unless it deems such disclosure necessary or required. Therefore, it is unclear if or when Paramount will officially announce any developments this week.

Representatives for all parties involved have either declined to comment or failed to respond to inquiries.

Source: Deadline