Former Warner Music Exec Reportedly Preparing Bid for Paramount Global
Bronfman’s potential bid is the most serious secondary offer to emerge in Paramount’s “go-shop” window with Skydance Media.
Edgar Bronfman Jr., who once ran Warner Music and currently serves as executive chairman of Fubo is looking to make a big purchase. His target? Paramount Global, which is currently in a 45-day “go-shop” period with Skydance Media CEO David Ellison, who also wants to buy the company. The Wall Street Journal reported Thursday that Bronfman is officially preparing a bid for Paramount Global, which could completely upend the sale process for the company if it meets the approval of Paramount’s board of directors.
Key Details:
- Bronfman has put together a team of backers to help him in his bid for Paramount.
- The executive has until Aug. 21 to make a bid, and may still decide not to.
- Interest in the bid could lead to an extension of the go-shop period while Paramount’s board decides what to do.
The Journal reports that Bronfman has held discussions with individuals and companies to help him pull together the money for a bid on Paramount, including Roku. In late July, reports first circulated that Bronfman was still deciding whether or not to try and pursue Paramount; it looks like he’s made his choice.
He would have until Wednesday, Aug. 21 to officially turn in the bid to the special committee set up by Paramount to consider merger and acquisition offers. That’s when the 45-day “go-shop” period agreed to when Paramount accepted Ellison's merger offer in early July ends. The Journal reports that Bronfman could still decide not to make a bid.
The “go-shop” window was built into the Skydance deal to help Paramount’s controlling shareholder Shari Redstone avoid lawsuits from other shareholders who weren’t satisfied with the deal terms. One such investor has already sued the company on grounds that Class-B shareholders aren’t properly compensated in the deal.
What Would Change if Bronfman’s Deal Terms Are Accepted?
If Bronfman does officially register a bid for Paramount, it would head to the Paramount special committee. At that point, the committee would have the right to extend the go-shop period while it negotiates. Ellison would also have the right to improve Skydance’s offer, which would involve purchasing National Amusements Inc., the holding company that controls a majority of Paramount’s voting stock. Ellison then plans to merge Skydance and Paramount together.
Bronfman might not be able to put together the $8 billion total offer that Skydance has made, but he may be able to give current Paramount shareholders the option of owning more of the company than they would under the terms of the Skydance deal, people familiar with the process told the Journal.
Pivoting to Bronfman would leave serious questions about key Paramount assets, such as streamers like Paramount+ and Pluto TV. Ellison has promised to rebuild Paramount+ if his bid is successful, amidst other sweeping changes he has planned for the company. There are no public details on Bronfman’s plans for Paramount assets if his bid is successful as of yet.
The ball is still in Bronfman’s court, and if he decides not to make a bid all of the discussion becomes moot. But this is the most serious potential challenge to Skydance’s bid for the company, apart from a most-likely-fake offer from a phantom company called Apex Capital Trust which was widely reported on at the beginning of August.
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