Veteran media executive Edgar Bronfman Jr. submitted a bid of roughly $4.3 billion to take over Paramount Global by acquiring National Amusements, the family holding company that owns a controlling stake in the media company. This bid, which includes $2.4 billion in debt and equity for National Amusements, threatens to disrupt a planned acquisition by tech scion David Ellison and his firm, Skydance Media. In addition to the acquisition of National Amusements, Bronfman would contribute $1.5 billion to Paramount’s balance sheet to pay down debt and cover a $400 million breakup fee for ending the rival deal.
Skydance and its deal partners previously reached an agreement to acquire Paramount through a complex transaction that involved buying out the Redstone family’s controlling stake in the company and subsequently merging with the publicly traded company. However, a 45-day “go-shop period” was put in place, allowing Paramount to consider alternative offers. Bronfman has stated that his offer is superior to the deal with Skydance as it does not involve Paramount acquiring Skydance, which was valued at $4.75 billion in an all-stock transaction.
A special committee of Paramount’s board is expected to meet to evaluate the feasibility of Bronfman’s offer and may consider extending the go-shop deadline to assess the competing bid. Bronfman has a history in the media industry, with past acquisitions including MCA in 1995, Warner Music Group in 2003, and an unsuccessful attempt to acquire Time Inc. in 2017. He had previously explored buying National Amusements but did not submit an offer until now. UBS and Perella Weinberg Partners have advised him on the deal.
Bronfman’s entry into the bidding process for Paramount adds a new layer of complexity to the sale process, which has already seen unexpected turns. If Paramount chooses to accept Bronfman’s offer, it would result in a significant reshuffling of ownership within the media company. The board committee overseeing the evaluation of the competing offers may choose to extend the go-shop period to fully assess the implications of Bronfman’s bid. The outcome of this process will have a significant impact on the future ownership and direction of Paramount Global.
The bid from Bronfman represents a strategic move in the ongoing consolidation within the media industry, with significant implications for Paramount, its assets, and its future trajectory. The decision by the special committee of Paramount’s board on whether to accept the offer or proceed with the planned acquisition by Skydance will shape the company’s future and potentially influence the broader media landscape. Bronfman’s extensive experience in the media business and his track record of acquisitions provide a solid foundation for his bid, which presents a compelling alternative to the existing deal on the table. The next steps in this process will be crucial in determining who ultimately takes control of Paramount Global.
