Competing Offer Submitted To Counter Paramount-Skydance Deal

Weeks after Australia’s Network10 and Paramount+ owner, Paramount Global, reached an agreement to merge with the David Ellison-led Skydance Media, that deal may now be scuppered by a rival offer made by media investor and Seagram’s heir Edgar Bronfman Jr.

When Skydance made the deal with Paramount, it allowed for a 45-day window during which Paramount could entertain competing offers. Bronfman seized the opportunity this week, two days before the scheduled closed of that window on Wednesday.

Edgar Bronfman Jr

Bronfman submitted a $4.3 billion (A$6.37 billion) bid to take control of Paramount Global. He is reportedly offering to buy National Amusements, the Shari Redstone family holding company that owns the majority of Paramount’s voting stock, for about $2.4 billion (A$3.56 billion), according to Bloomberg.

He also plans to invest $1.5 billion (A$2.22 billion) in Paramount to reduce its debt, receiving shares worth $16 (A$23.71) each in exchange. Non-Redstone holders of the company’s Class A voting stock can either receive $24.53 (A$36.36)-a-share in cash or 1.53 Class B shares. Also, Bronfman plans to eliminate Paramount’s dual-share classes within two years, extending voting privileges to all investors.

He reportedly intends to pay a $400 million (A$592.94 billion) breakup fee for the Skydance deal.

In comparison, the Ellison-led group also offered $2.4 billion (A$3.56 billion) for National Amusements and agreed to invest $6 billion (A$8.89 billion) more to buy Paramount shares and reduce its debt. It planned to merge Skydance into Paramount for shares worth $4.75 billion (A$7.04 billion).

Bronfman contends that his proposal is superior because it will result in less dilution for Paramount’s non-Redstone shareholders.

Hours before the Wednesday deadline, Bronfman is now reported to have increased his offer from $4.3 billion (A$6.37 billion) to $6 billion (A$8.89 billion). In addition to still acquiring National Amusements for $2.4 billion (A$3.56 billion), Bronfman would use the remaining funds to buy Paramount shares and reduce its debt.