Edgar Bronfman Jr.
Cameron Costa | CNBC
Edgar Bronfman Jr. makes offer to acquire controlling stake Paramount Worldwide If Shari Redstone’s acquisition goes through, he’ll likely continue to have a close relationship with the company.
Bronfman is willing to keep Redstone, now Paramount’s non-executive chairman, involved if Paramount’s special committee accepts his consortium’s bid for controlling shareholder National Entertainment, according to a person familiar with the matter.
Bronfman has raised $6 billion to challenge Skydance Media’s ownership of National Amusements, the holding company founded by Sumner Redstone, according to people familiar with the matter. Both Bronfman’s and Skydance’s bids will include funds to purchase a portion of Paramount Worldwide common stockholders’ shares.
Bronfman’s $6 billion bid would provide cash to about 20% of Class B shareholders at $16 per share. As part of the bid, Skydance will pay existing Paramount ordinary investors about 50% of the shares at $15 per share, according to people familiar with the matter.
It’s unclear whether Redstone prefers one option over the other. Paramount Worldwide’s special committee will determine by August 28 whether Bronfman’s offer is a better proposition for shareholders. time to match. The deadline for the completion of the entire process is September 5th.
Bronfman has days to raise more money to counter Skydance, which agrees to merge with Paramount Universal in an $8 billion deal last month. The special committee earlier this week Extending so-called “go-shop” deadlines During that time, it can accept competing bids and review Bronfman’s preliminary bid within 15 days.
One of the people involved in Bronfman’s bid is former AOL CEO Jon Miller, who said Redstone may have more control over Paramount Worldwide going forward than she does Skydance have greater control. Miller, a close ally of Redstone who has been connecting Bronfman with potential capital, is likely to have a role at the company — perhaps A board seat and an operations job. Bronfman will serve as CEO of the company if his deal is accepted and approved, people familiar with the matter said.
Miller, Redstone and Redstone’s son-in-law, Jason Osterheimer, jointly run Advancit Capital, a small venture capital firm that invests in media and technology. The trio are the only three to appear on the show The company’s website. Miller also served as Redstone’s de facto strategic adviser for many years, according to people familiar with the matter.
Redstone has not yet discussed the acquisition with Miller, according to people familiar with the matter.
Two people familiar with the matter said that while the Redstones and Bronfmans shared similar circles, including large donations to Jewish foundations, Edgar Bronfman Jr. and Sally Redstone did not meet much times, there is no close relationship.
Skydance Chief Executive David Ellison and Redstone have held multiple discussions about the possibility of Redstone remaining a shareholder in the combined Skydance-Paramount Global, according to people familiar with the matter.
Redstone is taking a wait-and-see approach to any future involvement she might want with Paramount Worldwide, regardless of ownership, according to a person familiar with her thinking.
Spokespeople for Redstone, Bronfman, Paramount Global and Skydance declined to comment.
11 hour bidding
Bronfman has spent the past few weeks gathering individuals interested in owning a stake in Paramount Worldwide, including film producer Steven Paul and Patron co-founder John Paul De Joria, they had previously considered making their own bid.
Bronfman’s financing comes from many different sources, and it could raise regulatory concerns if too much money comes from foreign entities. Having so many different financiers could also make Bronfman’s bid riskier than Skydance’s, which is backed by private equity firm RedBird Capital and billionaire Larry Ellison (David Ellison’s father) support.
Bronfman is the company’s chairman Fubo, The former head of sports streaming services Universal Music and Warner Music.
Lawyers for Skydance sent a letter to Paramount Worldwide’s special committee asking the company to stop negotiating with Bronfman, The Wall Street Journal said reported Thursday. Skydance said Paramount Universal violated the terms of the agreement by failing to provide Skydance with notice of its plans to extend the window, the report said.
Skydance also argued that the special committee had no power to extend the scope of the bid because the bid must be “reasonably expected to result in a superior proposal”. Skydance argued that Bronfman’s bid was substandard.
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