Paramount Takeover Battle: Bronfman Raises Bid to $6 Billion

• Edgar Bronfman increases his bid for Paramount Global to $6 billion.
• The offer directly challenges David Ellison’s Skydance Media proposal.
• Paramount shares rise by over 2.4% following the announcement.

London, August 22, 2024 (FFN) – In a significant development in the ongoing battle for control of Paramount Global, veteran media executive Edgar Bronfman has raised his bid to $6 billion. This substantial increase positions his offer as a direct challenge to the previously proposed $8.4 billion acquisition bid from David Ellison’s Skydance Media.

Bronfman’s revised bid includes $3.2 billion in funds that can be allocated either to reducing Paramount’s existing debt or to purchasing non-voting shares held by investors outside the Redstone family, offering $16 per share. This strategic move is designed to strengthen Bronfman’s position in the fierce competition for control of the iconic media company.

The market has reacted favorably to the news of the increased bid, with Paramount’s shares rising by over 2.4% after the announcement. This response reflects investor confidence in Bronfman’s proposal and its potential to reshape the future of Paramount Global.

Bronfman’s latest offer comes as a direct response to the $8.4 billion deal proposed by David Ellison’s Skydance Media, which involved a complex, two-step acquisition. Skydance’s offer included a commitment of $4.3 billion to purchase Paramount’s Class B shares at $15 per share and an additional pledge of $1.5 billion to bolster the company’s balance sheet.

By contrast, Bronfman’s bid is designed to eliminate the risks and costs associated with merging Paramount and Skydance, offering a more straightforward path forward. His investor group, which includes Fortress Investment Group and Jeff Ubben of Inclusive Capital Partners, believes that this approach would better serve Paramount’s long-term interests.

The bidding war has prompted Paramount’s board to extend the deadline for Bronfman’s consortium to finalize its offer until September 5, giving both sides more time to refine their proposals. The Ellison-led group is also expected to submit a counter-offer, setting the stage for a high-stakes showdown that could ultimately determine the future ownership of Paramount Global.

As this battle unfolds, the outcome will have significant implications not only for Paramount but also for the broader media landscape, potentially reshaping the structure and strategy of one of the industry’s most storied companies.