Edgar Bronfman Jr.’s bid for a controlling stake in Paramount Global is sending shockwaves through the industry, as it could potentially keep Shari Redstone closely tied to the company. The offer, if successful, would allow Redstone to remain involved with Paramount as a non-executive chairman, as per sources familiar with the matter. With $6 billion raised to challenge Skydance Media for ownership of National Amusements, Bronfman’s bid includes provisions to buy out a percentage of Paramount Global common shareholders.
The stakes are high as both Bronfman and Skydance are vying for control of National Amusements. While Bronfman’s bid offers $16 per share for about 20% of Class B holders, Skydance’s bid aims to pay out about 15% of current Paramount common investors at $15 per share. The Paramount Global special committee will assess the offers and determine if Bronfman’s proposal is superior for shareholders by Aug. 28, giving Skydance a few days to match if needed. The deadline for the entire process is set for Sept. 5.
Redstone’s future involvement with Paramount Global remains uncertain, with both Bronfman and Skydance presenting different scenarios. Bronfman’s team, which includes former AOL CEO Jon Miller, could potentially offer Redstone more control over the company than Skydance. Miller, a long-time ally of Redstone, is expected to play a significant role if Bronfman takes over, possibly securing a board seat and operational job. On the other hand, Redstone has had discussions with Skydance CEO David Ellison about her role as a shareholder in a combined Skydance-Paramount Global entity.
While Bronfman has been busy aggregating individuals interested in owning a piece of Paramount Global, the diverse sources of his financing may raise regulatory concerns. Having funding from multiple entities, especially foreign ones, could make Bronfman’s offer riskier compared to Skydance’s bid, which is supported by established names like RedBird Capital and Larry Ellison. The complexity of Bronfman’s financial backing adds a layer of uncertainty to his bid.
Skydance’s legal team has challenged the Paramount Global special committee’s decision to extend the “go-shop” period, arguing that the Bronfman bid does not meet the criteria for a superior proposal. With the deadline fast approaching, the battle for control of Paramount Global intensifies. It remains to be seen how the special committee will navigate the competing offers and determine the best path forward for the company.
Edgar Bronfman Jr.’s bid for Paramount Global represents a pivotal moment in the entertainment industry, with the potential to reshape the landscape of media ownership. The outcome of this high-stakes battle between Bronfman and Skydance could have far-reaching implications for the future of Paramount Global and the industry as a whole. As the deadline draws near, all eyes are on the Paramount Global special committee to make a decision that will impact the company’s direction moving forward.