Paramount Global's board of directors has extended the go-shop period under the Skydance Media deal by 15 days while it holds talks with an investor group led by Edgar Bronfman Jr., who on Wednesday offered $6 billion to take control of the media conglomerate — up from $4.3 billion previously.
Competitive Bidding for Paramount: What's Next for the Company?
Bronfman and his backers made the higher bid to acquire Paramount's controlling shareholder National Amusements Inc. on Wednesday and added a deal sweetener: They offered a $1.7 billion pool to give Paramount non-voting shareholders a $16-per-share buyout premium for a portion of their shares, sources confirmed to Variety. The Bronfman-led group originally offered $4.3 billion and did not offer to acquire Paramount Global's non-voting shares. The move puts on hold for now the deal with David Ellison's Skydance Media, which would have seen Skydance merge with Paramount.
Bronfman's increased offer for NAI and Paramount was first reported by the Wall Street Journal. The New York Times first reported that Paramount will extend the go-shop window. Reps for Bronfman and NAI declined to comment; a spokesman for the special committee did not respond to a request for comment.
The Bronfman-led bid, first submitted to Paramount’s board of directors on Monday, came in just two days before the midnight ET Aug. 21 deadline for the go-shop period allowed under the company’s agreement with Skydance, which allows Paramount to consider superior takeover proposals. With Bronfman now officially in the ring, the board’s special committee has extended the go-shop period an additional 15 days, to Sept. 5, 2024.
