Edgar Bronfman Jr. Continues Efforts for Paramount Deal, Axios Reports

Article Summary

Former Warner Music chairman Edgar Bronfman Jr. is currently negotiating with bankers regarding a potential bid for Paramount Global’s parent company, National Amusements, as reported by Axios on Tuesday.

Earlier this month, David Ellison’s Skydance Media reached an agreement to acquire Paramount, which includes a 45-day period allowing Paramount to seek better offers. If another offer is received that Skydance does not match, a break-up fee of $400 million will be payable.

Under the terms of the deal, Skydance and its partners would purchase National Amusements for $2.4 billion in cash. Following this, Ellison’s company would merge with Paramount, proposing to pay shareholders $4.5 billion in cash or stock and contributing an additional $1.5 billion to strengthen Paramount’s finances.

Bronfman is reportedly considering an offer between $2 billion and $2.5 billion for National Amusements, the private company that controls the Redstone family’s stake in Paramount.

Paramount has opted not to comment on the report from Axios, while a spokesperson for Bronfman stated that he is evaluating his options.

Additionally, CNBC indicated that billionaire Barry Diller’s digital-media company IAC is out of the competition to acquire Paramount and expressed skepticism about the potential for significant litigation concerning the planned merger.

The merger with Skydance Media faced legal challenges last week when investor Scott Baker filed a lawsuit to block the deal, citing concerns over lower payouts for shareholders.