Edgar Bronfman Presents a $4.3 Billion Rival Offer for Paramount

On Monday, veteran media executive Edgar Bronfman Jr. submitted a bid of approximately $4.3 billion to obtain National Amusements, the organization with a controlling post in Paramount Global, according to a source familiar with the matter. This proposal includes $2.4 billion in debt and equity for National Amusements, as well as $1.5 billion to strengthen Paramount's balance sheet, certainly to reduce debt. Additionally, the bid allots $400 million for a breakup fee to conclude an existing rival agreement. This new offer for Paramount Pictures, CBS, and MTV adds another unpredicted twiddle to the ongoing sale process.

Last month, Skydance Media and its partners clinched a deal to obtain Paramount, involving the purchase of the Redstone family's controlling stake in the company and an ensuing merger with the larger publicly traded entity. This pact included a 45-day "go-shop period," ending on August 21, during which Paramount could seek and assess other offers. Should Paramount opt for an alternative bidder, it would be required to pay Skydance a $400 million breakup fee.

The Wall Street Journal previously reported on Bronfman's bid. 

According to another source familiar with his reasoning, Bronfman contends that his offer is more advantageous as it eliminates the need for a second step in the transaction, where Paramount would need to acquire Skydance. Paramount had previously agreed to acquire Skydance in an all-stock deal valued at $4.75 billion, as stated by the companies.

A special committee of Paramount's board is scheduled to meet on Wednesday to assess whether Bronfman's offer is likely to succeed, according to the second source. The committee may also consider extending the go-shop deadline to September 5 to allow more time for evaluating the competing offer.