Edgar Bronfman making Offer for National Amusements, According to Source

On August 15, a source familiar with the situation revealed that Edgar Bronfman Jr, Seagram heir and media executive, is working on an offer for National Amusements, the family company that controls Paramount Global. This offer could materialize in the next few days, potentially adding another layer to the complex merger scenario, which recently saw Paramount accept a deal from David Elison’s Skydance Media.

Shares of Paramount, one of Hollywood's historic studios, rose 7.1% on Thursday following reports from Bloomberg News and the Wall Street Journal about the latest developments. According to the Wall Street Journal, Bronfman, former chairman of Warner Music, has been seeking support for his bid from Fortress Investment Group, streaming-device manufacturer Roku, and Hollywood producer Steven Paul. Although Bronfman showed interest in acquiring National Amusements in June with a proposed offer between $2 billion and $2.5 billion, he did not submit a bid. Details of a new potential deal are still being finalized, with Bronfman aiming to present his offer as less dilutive to Paramount's shareholders.

Under Skydance's proposal, Ellison, Skydance's founder, would take on the roles of chairman and CEO of the new Paramount once the go-shop period concludes on August 21. If Paramount receives a competing offer that Skydance does not match, Paramount will owe a $400 million break-up fee. The Paramount-Skydance deal emerged after prolonged discussions, which seemed to falter when National Amusements' owner Shari Redstone abruptly ended negotiations due to disagreements over indemnifying the controlling shareholder against potential shareholder lawsuits.

Last week, Paramount wrote down the value of its cable networks by nearly $6 billion and declared it would get a cut by 15% of its U.S.as it directs the rejection of the cable television business.