Linked media – Connected media
Edgar Bronfman Jr. has made a significant bid to acquire a major stake in Global Paramount, which could potentially ensure that Shari Redstone remains a pivotal figure within the organization.
A source close to the negotiations revealed that Bronfman’s bid includes a provision for Redstone, who currently serves as the non-executive chairman of Paramount, to continue her involvement with the company. This condition is contingent upon the acceptance of his offer by Paramount’s special committee from National Amusements, the primary shareholder.
Bronfman has reportedly secured $6 billion to outbid Skydance Media for control of National Amusements, a company originally founded by Sumner Redstone. Both competing offers from Bronfman and Skydance include plans to purchase shares from Paramount Global’s common shareholders.
Bronfman’s proposal would provide $16 per share to approximately 20% of Class B shareholders. In comparison, Skydance’s bid offers $15 per share to about 50% of the current common shareholders.
The decision by Paramount Global’s special committee, expected by August 28, will determine the superiority of Bronfman’s proposal over Skydance’s. Should the committee favor Bronfman’s bid, Skydance will have four business days to respond. The entire process is scheduled to conclude by September 5.
In the meantime, Bronfman is attempting to increase his financial backing to present a more formidable challenge to Skydance, which last month agreed to an $8 billion merger with Paramount Global. The special committee has extended the review period for Bronfman’s initial offer by an additional 15 days.
Jon Miller, a former AOL CEO involved in Bronfman’s bid, has suggested that under Bronfman’s leadership, Redstone could wield greater influence over Paramount Global compared to the arrangement with Skydance. Miller, who has worked closely with the Redstone family through their joint venture capital firm, Advancit Capital, is poised to assume significant roles within the company should Bronfman’s acquisition succeed.
Moreover, discussions between Skydance CEO David Ellison and Redstone have focused on the potential for Redstone to maintain a stake in the new entity formed by the Skydance-Paramount merger.
As negotiations continue, the industry watches closely, with all parties involved maintaining a discreet silence on the ongoing talks.
Connected media – Associated media
