Edgar Bronfman Jr.
Cameron Costa | CNBC
the future Paramount Worldwide Still not sure.
Paramount Special Committee Wednesday Said it would extend the agreed “go to the shops” period by 15 days The company is reviewing competing offers from Edgar Bronfman Jr. during the merger agreement with Skydance.
Bronfman initially offered to acquire National Amusements, owned by Paramount controlling shareholder Shari Redstone, for $4.3 billion, according to a person familiar with the matter. However, after the offer was made late Monday, Bronfman raised more money to support the higher bid, said the person, who requested anonymity to discuss details of the offer.
The offer is intended to replace the merger agreement reached between Paramount and Skydance Media in early July and ends a months-long negotiation process. The agreement includes a 45-day “go to shop” period during which Paramount can solicit additional offers.
The special committee confirmed on Wednesday that it “has received an acquisition proposal from Edgar Bronfman Jr. on behalf of a consortium of investors.”
“As a result, the Bronfman Consortium's 'go to store' period has been extended to September 5, 2024, subject to the transaction agreement to which the company remains subject,” The committee said in a statement. “There is no assurance that this process will result in a superior proposal. The Company does not intend to disclose further developments unless the Company determines that such disclosure is appropriate or is otherwise required.”
The committee added that during the initial “go to shop” period, it contacted more than 50 third parties to assess potential acquisition interest. The commission said the discussion deadline for all other parties would still expire by midnight on Wednesday.
The Skydance acquisition consortium, which also includes private equity firms RedBird Capital Partners and KKR, agreed to invest more than $8 billion in Paramount and acquire National Amusements. The deal gives National Amusements an enterprise value of $2.4 billion, including $1.75 billion in equity.
As part of the Skydance deal, Paramount's Class A shareholders will receive $23 per share in cash or stock, and Class B shareholders will receive $15 per share, equivalent to a total of $4.5 billion in cash consideration available to public shareholders. Skydance also agreed to inject $1.5 billion into Paramount's balance sheet.
National Amusements owns 77% of Paramount's Class A stock and 5% of its Class B stock. If the Skydance deal closes, it will own 100% of Paramount's Class A shares, as well as 69% of the outstanding Class B shares.
Bronfman's original bid proposed acquiring National Amusements in an equity deal worth $1.75 billion. The offer includes a $1.5 billion investment in Paramount's balance sheet, as in the Skydance deal, as well as payment of a $400 million breakup fee Paramount would owe Skydance if it walked away from the deal, people familiar with the matter said.
Bronfman previously ran for Warner Music and alcohol company Seagram and served as Fubo TV station Since 2020. report Reported by The Wall Street Journal.
The merger agreement between Paramount and Skydance is drawing close attention from shareholders. Money Manager Mario Gabelli It is said The filing of a lawsuit demanding that Paramount turn over its books related to the Skydance deal could be the first step in a lawsuit over the deal. Investor Scott Baker It is said sued to block the deal, saying it would cost shareholders $1.65 billion.