Bronfman Submits $4.3B Rival Bid for Paramount Global

Media executive Edgar Bronfman Jr. is formally making his play for Shari Redstone’s media empire, in an attempt to scuttle a previous agreement to merge Paramount Global with David Ellison’s production company Skydance Media. 

Bronfman has submitted a $4.3 billion offer for National Amusements, the company through which Redstone’s family controls the media giant, and a minority stake in Paramount Global, according to The Wall Street Journal citing people familiar with the situation.

As part of the offer, Bronfman has proposed buying National Amusements in an equity deal valued at $1.75 billion, equal to what Skydance has offered for Redstone’s company, plus investing $1.5 billion onto Paramount’s balance sheet, also similar to what Skydance has offered, the people said. 

The figure also would cover a $400 million breakup fee owed if Paramount chooses to go with an offer other than Skydance. 

Edgar Bronfman Jr.

Bronfman, who formerly ran Warner Music and liquor giant Seagram, has secured financing commitments primarily from high net-worth individuals and family offices, the people said. He has also teamed up with movie producer Steven Paul, who previously expressed interest in National Amusements. 

The new offer marks the latest twist in a monthslong effort to sell Paramount, which owns CBS, cable networks Comedy Central and Nickelodeon, the Paramount+ streaming service and movie studio. 

Last month, Redstone agreed to sell National Amusements to Skydance Media, run by David Ellison, the son of billionaire Oracle co-founder Larry Ellison. Under that deal, Skydance and its investors have agreed to spend more than $8 billion to acquire National Amusements and then merge Skydance into Paramount, creating a new iteration of the iconic business. 

The Skydance deal is subject to a “go-shop period,” when other potential buyers can make offers, which ends on Wednesday. 

Now it is up to a special committee of directors at Paramount to decide if Bronfman’s bid “is or would reasonably be expected to lead to a superior proposal,” relative to Skydance’s offer, and thus warrants extending the go-shop period for another two weeks, according to the Skydance deal terms.