:max_bytes(150000):strip_icc()/GettyImages-21503179901-0707da00b1154981a22d910cb511fca7.jpg "Bronfman Reportedly Bids $4.3B for Control of Paramount")
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KEY TAKEAWAYS
- Media executive Edgar Bronfman Jr. has reportedly submitted a formal $4.3 billion bid for National Amusements, the controlling shareholder of Paramount Global, after Skydance Media struck a deal for Shari Redstone’s media empire last month.
- According to The Wall Street Journal, Bronfman’s offer for National Amusements is similar in price to Skydance’s.
- Apart from a $400 million breakup fee, a key difference is that there would be no dilution for Paramount shareholders, as it isn’t an all-stock bid.
Media executive Edgar Bronfman Jr. has reportedly submitted a formal $4.3 billion bid for National Amusements, the controlling shareholder of Paramount Global (PARA), after Skydance Media struck a deal for Shari Redstone’s media empire last month.
According to The Wall Street Journal, Bronfman’s offer for National Amusements is similar in price to Skydance’s, but apart from a $400 million breakup fee, a key difference is that there would be no dilution for Paramount shareholders, as it isn’t an all-stock bid.
Bronfman has secured financing from high-net-worth individuals and family offices, and is teaming up with movie producer Steven Paul, the report said.
Reported Offer Comes as ‘Go-Shop Period’ Expires Wednesday
The reported bid by Bronfman comes as a 45-day “go-shop period” that allows Paramount to seek a better offer expires Wednesday.
Bronfman’s is the latest in a series of offers for control of Paramount in recent months. The entertainment firm, which owns CBS, MTV, and its eponymous movie studio, has been struggling as the rise of streamers like Netflix (NFLX) disrupt traditional networks.
Paramount shares are down about 3% an hour before the opening bell Tuesday.