The future of Paramount Global is uncertain as the special committee extends the “go shop” period of its merger agreement with Skydance in order to review a competing offer from Edgar Bronfman Jr. Bronfman initially offered $4.3 billion, but later raised the bid to $6 billion. This offer aims to supersede the merger agreement with Skydance, which includes a $8 billion investment into Paramount and acquisition of National Amusements.
Bronfman’s bid includes a minority stake in Paramount, a tender offer for non-Redstone, nonvoting shareholders, and covering the $400 million breakup fee owed to Skydance. The special committee has confirmed the receipt of Bronfman’s proposal and extended the “go shop” period until September 5, 2024.
Paramount had reached a merger agreement with Skydance in July, where class A shareholders would receive $23 per share and class B shareholders $15 per share. National Amusements owns a majority stake in Paramount and could wholly own class A and 69% of class B shares in a potential Skydance transaction.
Bronfman, a former executive of Warner Music and Seagram, has submitted a bid that has drawn scrutiny from shareholders, with lawsuits filed by investors looking to challenge the Skydance deal. The outcome of this bidding war and potential merger remains uncertain as the special committee continues to review offers.
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