Edgar Bronfman Jr, Chairman, Endeavor Global.
Credit: Reuters Photo
Veteran media executive Edgar Bronfman Jr on Monday submitted a roughly $4.3 billion bid in which it would acquire National Amusements, the company that holds a controlling interest in entertainment giant Paramount Global, a person familiar with the matter told Reuters.
This offer includes $2.4 billion in debt and equity for National Amusements, the source said. Bronfman also would contribute $1.5 billion to Paramount's balance sheet, which could be used to pay down debt, the person said. The bid adds $400 million to cover a breakup fee to end a rival deal.
The competing offer for the home of Paramount Pictures, the CBS broadcast network and MTV is a fresh twist in a sale process marked by a number of unexpected turns. Skydance Media and its deal partners reached an agreement last month to acquire Paramount in a complicated transaction, in which it would buy out the Redstone family's controlling stake in Paramount and subsequently merge into the larger publicly traded company.
That agreement contained a 45-day "go-shop period" that allowed Paramount to solicit and evaluate other offers. That period ends on Aug 21. If Paramount chooses another suitor, it must pay Skydance a $400 million break-up fee.
The Wall Street Journal earlier reported Bronfman's bid.
Bronfman has argued his offer is superior, because it would not involve a second step of the transaction in which Paramount would acquire Skydance, another source familiar with his rationale told Reuters. Paramount previously agreed to purchase Skydance in an all-stock transaction that values the independent media company at $4.75 billion, the companies have said.
A special committee of Paramount's board is expected to meet Wednesday to determine whether Bronfman's offer has a reasonable probability of succeeding, the second person said.
Paramount's board committee could extend the go-shop deadline to Sept 5, to give it time to evaluate the competing offer.
Bronfman did not respond to Reuters' requests for comment. A spokesman for Paramount's board declined to comment.