Paramount Global Extends Deadline to Evaluate Edgar Bronfman Jr.'s Takeover Proposal
Paramount Global has prolonged its review period until September 5 to carefully assess Edgar Bronfman Jr.'s latest takeover offer, which could surpass the existing agreement with Skydance Media.
Key Highlights
- Paramount Global's special committee has extended the "go-shop" deadline to September 5 to thoroughly examine Edgar Bronfman Jr.'s recent takeover bid that might outbid Skydance Media's accepted offer.
- According to The Wall Street Journal, Bronfman increased his proposal for Shari Redstone's media conglomerate to $6 billion, targeting Paramount's majority shareholder National Amusements and a minority interest in the entertainment powerhouse.
- Last month, David Ellison's Skydance Media agreed to an $8 billion-plus deal with Redstone, involving the acquisition of National Amusements and a merger between Skydance and Paramount, as reported by The Wall Street Journal.
Paramount Global (PARA) announced that its special committee has extended the "go-shop" period until September 5 to evaluate Edgar Bronfman Jr.'s updated takeover proposal, which may exceed the terms of Skydance Media's accepted offer.
Bronfman, a prominent media entrepreneur, has reportedly increased his bid for Shari Redstone's media empire to $6 billion, focusing on acquiring Paramount's controlling shareholder National Amusements and a minority stake in the entertainment giant.
Bronfman's Offer Surpasses Previous $4.3 Billion Bid
The Wall Street Journal revealed that Bronfman's revised bid exceeds his earlier $4.3 billion offer and includes $1.7 billion for a tender offer. This tender offer would provide non-Redstone, nonvoting Paramount shareholders the opportunity to cash out at a premium price of $16 per share, according to sources familiar with the situation.
Meanwhile, David Ellison's Skydance Media had previously agreed to a deal valued at over $8 billion with Redstone, which entailed purchasing National Amusements and merging Skydance with Paramount, The Wall Street Journal reported last month.
Paramount's stock price increased by 1.3% to $11.23 as of 11:30 a.m. ET on Thursday, although shares have declined by nearly 25% throughout the year.
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