Media Veteran Bronfman Increases Paramount Takeover Bid to $6 Billion, Sources Say

Veteran Media executive Edgar Bronfman sweetened his bid to take over Paramount Global, Offering $6 billion for its controlling shareholder National Amusements and a minority stake in Paramount, according to a person familiar with the matter.

Earlier, he had offered $4.3 billion, according to Reuters sources. Shares of Paramount rose more than 2.4% after the market closed.

On Wednesday, Paramount stated it had received an accession proposal from Bronfman, representing a consortium of investors, though the terms were not disclosed. 

This rival bid for Paramount, which owns Paramount Pictures, the CBS broadcast network, and cable channels like MTV, poses a threat to a planned acquisition by tech mogul David Ellison and his company, Skydance Media.

Bronfman’s updated offer includes $3.2 billion intended to either reduce Paramount's debt or buy out non-voting Paramount shares held by investors other than the Redstone family for $16 in cash, according to a source who requested anonymity due to the information being non-public.

The allocation of those funds would be determined by the board and the Bronfman-led investor group, the source noted.

In contrast, Skydance's $8.4 billion proposal to acquire Paramount involves a complex, two-step process where Paramount would first acquire Ellison's smaller independent media company through an all-stock transaction.

Ellison and his deal partner, Redbird Capital Partners, committed $4.3 billion to acquire Paramount's Class B shares at $15 each in cash. They also pledged to inject at least $1.5 billion into the company's balance sheet.

In response, Bronfman proposed $2.4 billion in debt and equity for National Amusements, aligning with the terms of Skydance's purchase agreement, according to an acquisition proposal submitted on Monday to Paramount special committee Chairman Charles Phillips and reviewed by Reuters. National Amusements holds the Redstone family's controlling stake in Paramount.

Bronfman contended in his proposal that his offer is superior because it would mitigate the risks and costs associated with merging Paramount and Skydance.

If successful, Bronfman’s bid would also cover the $400 million break fee owed to Skydance, the source said.

"We believe multiple board members support a bid that excludes the dilution from Skydance," Rich Greenfield, analyst at LightShed Partners said in a note published on Tuesday.

On Wednesday, Skydance declined to comment, and Bronfman did not reply to a request for comment.

Bronfman’s investor group incorporated Fortress Investment Group and Jeff Ubben, founder and managing partner of Inclusive Capital Partners, according to an August 19 letter reviewed by Reuters.

Cryptocurrency entrepreneur Brock Pierce and Kazakhstan investor Nurali Aliyev, who were previously part of Bronfman’s group, were absent from revised documents provided to Paramount’s board, as indicated in an August 20 letter seen by Reuters. This document also listed 65 additional parties that Bronfman had approached to join his investor group.

Skydance and Paramount had agreed to a 45-day “go-shop” period, allowing the publicly traded media company to seek and evaluate other offers.

Paramount stated that it has extended the deadline for Bronfman’s consortium from Wednesday to September 5. The Ellison-led group will have the chance to submit a counter-offer, according to the source.

The Wall Street Journal was the first to report on Bronfman’s enhanced offer.