Edgar Bronfman Jr. has made a major offer to acquire a major stake in Global Paramount, potentially ensuring that Shari Redstone remains a key figure within the organization.
A source familiar with the negotiations said Bronfman’s offer includes a clause that Redstone, who currently serves as Paramount’s non-executive chairman, will continue his involvement with the company. This condition is contingent on his offer being accepted by Paramount’s special committee by National Amusements, the major shareholder.
Bronfman reportedly secured $6 billion to outbid Skydance Media for control of National Amusements, a company originally founded by Sumner Redstone. Both Bronfman and Skydance’s competing bids include plans to buy shares from Paramount Global’s common shareholders.
Bronfman’s proposal would provide $16 a share to about 20% of Class B shareholders. By comparison, Skydance’s offer offers $15 a share to about 50% of current common shareholders.
The decision of Paramount Global’s special committee, scheduled for August 28, will determine whether Bronfman’s proposal is superior to Skydance’s. If the committee favors Bronfman’s offer, Skydance will have four business days to respond. The entire process is expected to conclude by September 5.
Meanwhile, Bronfman is trying to increase his financial backing to present a more formidable challenge to Skydance, which last month agreed to an $8 billion merger with Paramount Global. The special committee extended the review period for Bronfman’s initial offer by another 15 days.
Jon Miller, a former AOL CEO who was involved in Bronfman’s bid, has suggested that under Bronfman’s leadership, Redstone could have more influence over Paramount Global than he did with the Skydance deal. Miller, who has worked closely with the Redstone family through their joint venture firm, Advancit Capital, is poised to take on significant roles within the company if Bronfman’s takeover is successful.
Additionally, discussions between Skydance CEO David Ellison and Redstone have focused on whether Redstone would retain a stake in the new entity resulting from the Skydance-Paramount merger.
As negotiations continue, the industry is watching intently, while all parties involved are maintaining a discreet silence on the ongoing talks.
