Paramount Reportedly Attracts a Second Bidder

• Paramount announced a merger with Skydance Media in July.
• The deal had a 45-day period that allowed Paramount to seek other bidders.
• Edgar Bronfman Jr., ex-CEO of Warner Music Group, submitted an offer just before the period ended.

Skydance Media’s anticipated merger with Paramount has hit a snag. Just hours before Paramount’s $8 billion agreement with David Ellison’s Skydance was set to become official, a special committee overseeing the acquisition announced a new twist.

In a late-hour press release, the committee revealed it is considering an alternative offer from Edgar Bronfman Jr., former CEO of Warner Music Group. Bronfman’s surprising move comes during the designated 45-day “go-shop” period, which permits Paramount to explore other bids.

This unexpected development came after Paramount and Skydance heralded their merger in July, following a rocky negotiation phase. The deal entailed the sale of Shari Redstone’s paramount controlling stake to Ellison’s Skydance, leading to the inception of the “New Paramount.”

However, as the clock ticked down on the 45-day window, Bronfman submitted an initial bid of $4.3 billion to buy Redstone’s stake, as reported by The Wall Street Journal. Bronfman has since increased his offer to $6 billion, insiders revealed on Wednesday.

Paramount’s special committee responded by extending the “go-shop” deadline to consider Bronfman’s proposal further. This extended timeline now gives Skydance until September 5 to revise and potentially improve their offer.

Despite the extension, Bronfman Jr. and his financial backers might face an intense bidding battle. Skydance enjoys robust support, notably from the Ellison family, including billionaire Oracle co-founder Larry Ellison. On the other hand, Bronfman’s camp is fueled by heavyweights like private equity firm Fortress Investment Group and crypto investor Brock Pierce, who also gained fame as a child actor in the “Mighty Ducks” franchise.

Source: Business Insider