Paramount Global’s Special Committee Considers Revised $6 Billion Offer

Paramount Global’s Special Committee Extends “Go-Shop” Window

Paramount Global’s special committee is taking a long look at a revised $6 billion offer for the media conglomerate by industry veteran Edgar Bronfman Jr. and has extended the “go-shop” window by 15 days to September 5.

Bronfman Jr.’s Revised Offer

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.

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

Use of Additional Funds

It is understood 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 Ellison’s Offer

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

Bronfman Jr.’s Proposal

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

Backing for Bronfman Jr.’s Offer

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.

Potential Outcome

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 Edgar Bronfman Jr. has given Paramount Global’s special committee a new option to consider. The committee’s decision will have significant implications for the company’s future and will likely be closely watched by investors and industry observers.

FAQs

Q: What is the revised offer by Edgar Bronfman Jr.?
A: The revised offer is $6 billion, an increase of $1.7 billion from the original $4.3 billion proposed.

Q: What will the additional funds be used for?
A: The additional funds will be used to buy out a number of shareholders, most of whom are non-voting, at $16 a share.

Q: Is Bronfman Jr.’s offer backed by a consortium?
A: Yes, 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.

Q: What will happen if the special committee deems Bronfman Jr.’s offer superior to that of Ellison?
A: Ellison could come back with a revised bid.

Q: Who will make the final decision on the company’s future?
A: Redstone will get the final vote on where the company ends up.