Edgar Bronfman Jr. Submits $4.3 Billion Bid to Acquire Paramount Global

Veteran media executive Edgar Bronfman Jr. has made a significant move to take over Paramount Global by submitting a $4.3 billion bid to acquire National Amusements, a holding company that controls a majority stake in the media giant.

This bid, which includes $2.4 billion in debt and equity for National Amusements and $1.5 billion to bolster Paramount’s balance sheet, could potentially disrupt David Ellison’s Skydance Media’s existing acquisition plan.

A Rival Bid with Higher Stakes:

Bronfman’s offer threatens to derail Skydance’s previous agreement to acquire Paramount in a complex transaction that involves buying out the Redstone family’s controlling stake and merging with the larger company.

Bronfman’s bid is considered superior because it doesn’t require Paramount to acquire Skydance, unlike the original all-stock transaction, which valued Skydance at $4.75 billion.

Upcoming Decisions and Strategic Moves:

Paramount’s board is expected to meet soon to evaluate Bronfman’s offer. The board may extend the current “go-shop period,” allowing them to assess the bid thoroughly before the deadline on August 21, which could be pushed to September 5. If Paramount chooses Bronfman’s offer, Skydance must pay a $400 million breakup fee.

Edgar Bronfman Media Industry Legacy:

Bronfman is a well-known figure in the media industry with a history of high-profile acquisitions. In 1995, he led Seagram’s purchase of MCA, which included Universal Music Group and Universal Studios. He later acquired Warner Music Group in 2003 but sold it in 2011. Bronfman’s previous attempt to acquire Time Inc. in 2017 was unsuccessful.

UBS and Perella Weinberg Partners are advising Bronfman on this deal, though it’s unclear if he has other partners involved in the bid.