Paramount Global’s Special Committee Reviews Revised $6bn Offer

Paramount Global’s special committee is taking a long look at a revised $6bn offer for the media conglomerate by industry veteran Edgar Bronfman Jr.

The committee always had the option to extend the deadline, which was due to expire tonight. This is an indication it views Bronfman Jr.’s 11th-hour offer seriously enough to press pause on the previously agreed merger with David Ellison’s Skydance Media.

Revised Offer Details

According to reports, Bronfman Jr. has increased the offer by $1.7bn from the original $4.3bn proposed.

The additional sum will be used to buy out a number of shareholders, most of whom it is understood are non-voting, at $16 a share.

Comparison to Previous Offer

In his offer backed by RedBird Capital, Ellison offered $15 a share, although he allocated the significantly larger amount of $4.5bn.

Bronfman Jr.’s Proposal

Bronfman Jr.’s proposal would pay $2.4bn for Sheri Redstone’s National Amusements, owner of a controlling interest in Paramount Global, inject $1.5bn into the balance sheet to pay down debt, and put up $400m payment to cover a termination fee Paramount Global would pay Skydance Media were it not to consummate that deal.

Backed by Consortium

Reports on Wednesday said Bronfman Jr.’s offer is backed by a consortium comprised of Hollywood producer Steven Paul, crypto investor Brock Pierce, Fortress Investment Group, and industry executives John Martin and Jon Miller.

Next Steps

Should the special committee deem Bronfman Jr.’s offer superior to that of Ellison, the latter could come back with a revised bid.

Redstone will get the final vote on where the company ends up.

Conclusion

The revised offer by Bronfman Jr. adds a new layer of complexity to the situation. The special committee will need to carefully weigh the pros and cons of each offer and decide which one is best for Paramount Global’s future.

Frequently Asked Questions

What is the revised offer by Bronfman Jr.?
The revised offer is worth $6bn, an increase of $1.7bn from the original offer.

What will happen if the special committee decides to accept Bronfman Jr.’s offer?
If the special committee decides to accept Bronfman Jr.’s offer, it could mean a pause on the merger with Skydance Media.

What is the next step?
The special committee will need to deliberate and make a decision on which offer to accept. Redstone will have the final say.