In a significant turn of events, billionaire media investor Edgar Bronfman Jr. has raised up to $5.5 billion to enhance his last-minute offer for Paramount Global, potentially complicating the company’s existing agreement with Skydance Media, according to sources familiar with the situation. Bronfman’s initial bid of $4.3 billion was submitted on Monday night, just before the end of Paramount’s 45-day “go shop” period, and is expected to be improved soon following commitments from a diverse group of investors.
This group includes Fortress, which is majority-owned by Abu Dhabi’s Mubadala investment arm, private investment firm BC Partners Credit, film producer Steven Paul, crypto entrepreneur Brock Pierce, and Nurali Aliyev, a tech entrepreneur and grandson of Kazakhstan’s former autocratic leader. The participation of foreign investors may raise concerns with the Committee on Foreign Investment in the U.S. (Cfius), which reviews deals for national security risks, especially given Paramount’s ownership of CBS News and potential foreign ownership restrictions.
In a letter to a special committee of Paramount directors, Bronfman’s investor group claimed that their proposal “represents a much more favorable outcome for Paramount stockholders and creates a far more viable public company than the Skydance deal.” However, the letter did not clarify how they intend to address possible Cfius concerns.
The response of the special committee, led by director Charles Phillips, to the new offer is still uncertain. Some sources indicate that Phillips had previously tried to undermine the Skydance deal. Skydance, which is supported by U.S. private equity group RedBird Capital and Oracle co-founder Larry Ellison, is expected to argue that Bronfman’s bid offers no value to Paramount’s shareholders while providing him with complete control. Conversely, Bronfman is likely to contend that his offer would result in less dilution for Paramount’s existing shareholders compared to Skydance’s proposal.
As the competition for the 98-year-old Paramount Pictures studio, known for iconic films like The Godfather and Titanic, heats up, the industry is keenly anticipating the next developments in this high-stakes Hollywood saga.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.