The future of Paramount Global remains uncertain as the special committee overseeing the merger agreement with Skydance has extended the “go shop” period to review a competing offer from Edgar Bronfman Jr. Bronfman initially offered $4.3 billion for National Amusements, the controlling shareholder of Paramount, with plans to acquire a minority stake. However, he raised more funds and submitted a revised offer of $6 billion, looking to supersede the existing merger agreement with Skydance Media. The committee confirmed receiving the proposal from Bronfman and extended the “go shop” period until September 5, 2024. They have contacted over 50 third parties during the initial period to gauge interest in an acquisition.
The Skydance buying consortium had agreed to invest over $8 billion into Paramount and acquire National Amusements, giving it an enterprise value of $2.4 billion. Under the deal, Paramount’s class A shareholders would receive $23 per share, and class B shareholders would receive $15 per share. If the Skydance transaction were to close, National Amusements would wholly own class A shares and 69% of outstanding class B shares.
Bronfman’s bid includes $1.7 billion for a tender offer, giving non-Redstone, nonvoting shareholders the option to receive $16 per share. The merger agreement between Paramount and Skydance has drawn shareholder scrutiny, with lawsuits filed seeking to challenge the deal. Bronfman has a background in entertainment and has been involved with various companies like Warner Music and Fubo TV. Overall, the future of Paramount Global remains uncertain as stakeholders navigate through competing offers and legal challenges.
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