Edgar Bronfman Jr. Raises $6 Billion Bid to Challenge Skydance for Paramount Ownership, Potentially Keeping Shari Redstone Involved
Edgar Bronfman Jr. has launched a $6 billion bid to acquire National Amusements, the holding company that controls Paramount Global, positioning himself as a key contender against Skydance Media for the ownership of the media giant. If successful, Bronfman’s proposal could ensure that Shari Redstone, currently the non-executive chairman of Paramount, remains closely connected to the company.
Details of the Competing Bids
Bronfman’s bid, which seeks to secure a controlling stake in National Amusements, would offer cash to approximately 20% of Class B shareholders at a rate of $16 per share. In contrast, Skydance Media’s bid proposes a payout of $15 per share to about 50% of Paramount’s common investors. Both bids include provisions for buying out a percentage of Paramount Global’s common shareholders.
The Paramount Global special committee is tasked with evaluating whether Bronfman’s bid presents a superior proposal for shareholders. This decision must be made by August 28, 2024. If Bronfman’s offer is deemed better, Skydance will have four business days to match the offer. The deadline for concluding the entire bidding process is September 5, 2024.
Potential Implications for Shari Redstone
Bronfman’s bid could potentially keep Shari Redstone involved with Paramount Global, unlike Skydance’s offer. According to sources familiar with the matter, Bronfman is open to retaining Redstone in some capacity within the company if his bid is successful. One notable figure in Bronfman’s consortium is former AOL CEO Jon Miller, who has strong ties to Redstone. Miller’s involvement suggests that Redstone might maintain a more influential role in Paramount Global under Bronfman’s leadership compared to Skydance’s bid.
Miller, along with Redstone and her son-in-law Jason Ostheimer, co-manages Advancit Capital, a venture capital firm focused on media and technology investments. This connection implies that Miller could play a significant role in Bronfman’s management team, potentially taking a board seat or an operational position within the company.
Next Steps and Strategic Considerations
Bronfman is still working to raise additional funds to strengthen his bid against Skydance Media, which has already agreed to an $8 billion deal to merge with Paramount Global. The special committee’s extension of the “go-shop” period by 15 days will allow further evaluation of Bronfman’s initial proposal.
Despite the familial and philanthropic connections between the Bronfman and Redstone families, including joint donations to Jewish causes, Bronfman and Redstone do not have a deep personal relationship. Nonetheless, Bronfman’s bid represents a significant strategic move in the ongoing competition for control of Paramount Global.
Conclusion
The battle for control of Paramount Global is heating up, with Edgar Bronfman Jr.’s $6 billion bid posing a serious challenge to Skydance Media’s $8 billion offer. The outcome of this high-stakes contest could reshape the future of Paramount Global and determine the extent of Shari Redstone’s involvement in the company.