A new offer could change Paramount’s merger plans. Billionaire Edgar Bronfman Jr. has proposed a $4.3 billion bid to gain control of Paramount Global. His offer targets National Amusements Inc. (NAI), the company that currently has majority voting power over Paramount.
Bronfman’s proposal includes $2.4 billion to purchase NAI and $1.5 billion to strengthen Paramount’s finances. He also pledged $400 million to cover any fees if Paramount ends its planned merger with Skydance Media. That $8 billion deal between Paramount and Skydance would combine the two companies.
Paramount had been negotiating the Skydance merger but must consider higher offers during a “shop around” period ending August 21. Bronfman’s last-minute bid provides an alternative that could derail the Skydance deal. The special committee reviewing offers for Paramount will meet on Wednesday to discuss Bronfman’s proposal.
Bronfman’s approach differs from the Skydance merger. That deal would see Skydance buy NAI and then merge with Paramount. Bronfman mainly aims to buy NAI’s controlling stake alone. Some question if all Paramount shareholders would support this.
Bronfman brings decades of experience in media as the former CEO of Warner Music Group and Seagram. However, his vision for Paramount remains unclear. There is speculation he may sell some divisions.
Representatives for all involved parties, including NAI and the special committees, declined to comment on the developing situation. With billions at stake and Paramount’s future undecided, the industry awaits the next steps in this high-stakes bidding process.
