Source – cnbc.com
Billionaire media investor Edgar Bronfman Jr. has intensified his pursuit of Paramount Pictures, presenting a last-minute offer potentially worth up to $5.5 billion. This move aims to surpass the Hollywood studio’s existing agreement with Skydance Media. According to sources familiar with the matter, Bronfman initially offered $4.3 billion on Monday evening, just before Paramount’s 45-day “go shop” period was set to end. However, Bronfman plans to enhance this offer in the coming days after securing additional commitments from investors.
Investment Banking and Offer Details
Bronfman’s bid is supported by a diverse group of investors, including Fortress, a major player owned by Abu Dhabi’s Mubadala investment arm, and BC Partners Credit. Other notable backers include film producer Steven Paul, crypto entrepreneur Brock Pierce, and Nurali Aliyev, the tech entrepreneur and grandson of Kazakhstan’s former leader. The proposal also includes plans to match Skydance’s intended $1.5 billion cash injection into Paramount and offer $400 million to Skydance to terminate their existing deal. However, Bronfman’s initial offer did not address terms for Paramount’s non-voting shareholders.
Regulatory and Strategic Considerations
The bid is expected to draw scrutiny from the Committee on Foreign Investment in the U.S. (CFIUS), which reviews foreign investments for national security risks. Paramount owns CBS News, a fact that could trigger additional regulatory concerns. In his offer letter, Bronfman highlighted the potential benefits of his proposal, stating it would create a more viable public company compared to the Skydance deal. However, details on how Bronfman plans to mitigate CFIUS concerns were not provided.
Edgar Bronfman Jr. withdraws $6B offer to acquire Paramount
The Competitive Landscape
Bronfman’s offer comes amid a competitive landscape involving Skydance Media, led by billionaire David Ellison. Skydance’s July agreement with Paramount proposed an acquisition valued at over $8 billion. This deal included buying out Shari Redstone’s National Amusements for $2.4 billion and integrating Paramount with an additional $1.5 billion investment. Skydance’s proposal also involved a $4.5 billion deal to purchase up to half of Paramount’s non-voting stock at $15 per share.
As Edgar Bronfman Jr. gears up to submit an improved bid, he faces potential opposition from Skydance and scrutiny from Paramount’s special committee, led by director Charles Phillips, who has previously shown resistance to the Skydance proposal. Bronfman is advised by Perella Weinberg Partners, UBS, and Rockefeller Capital Management on financial aspects, with legal counsel from Skadden.
This development adds another layer of complexity to the ongoing battle for Paramount Pictures, the last major studio based in Hollywood, renowned for producing cinematic classics like The Godfather and Titanic.
