Edgar Bronfman Jr. is open to Shari Redstone staying involved with Paramount Global if Paramount Global’s special committee accepts his consortium’s takeover bid for controlling shareholder National Amusements. CNBC reported: Friday.
On Wednesday, the veteran media executive upped his bid to buy Paramount by offering National Amusements $6 billion and a minority stake in the media conglomerate.
Bronfman’s competing proposal threatens to undermine a takeover plan by tech magnate David Ellison and his independent studio, Skydance Media.
In an Aug. 19 letter to Paramount’s special committee seen by Reuters, Bronfman thanked Paramount Chairman Redstone for his “ongoing support” and “open dialogue” during the bid process, but made no mention of his continuing role at the company.
A person familiar with the matter said the decision to stay involved with Paramount ultimately rested with Mr. Redstone, who had allowed Sidney Sheinberg, president of entertainment conglomerate MCA, to stay on in his role after Mr. Bronfman took control of the company in 1995.
A spokesman for Redstone couldn’t immediately be reached for comment, and Bronfman did not respond to an email seeking comment.
Paramount, controlled by Redstone’s family company, would have to pay $400 million in termination fees if it accepted the offer that Skydance did not match.
Paramount and its special committee declined Reuters requests for comment, while National Amusements and Bronfman did not immediately respond.
Skydance Media CEO Ellison also spoke with Redstone about his future at the company, the report added.
Paramount and Skydance Media signed a merger agreement in early July that included a 45-day “go-shop” period to solicit and consider other transactions.
Paramount announced this week that a special board committee had extended its Aug. 21 “go-shop” period deadline to Sept. 5 to evaluate Bronfman’s bid.
Skydance Media accused Paramount Global’s special committee of violating the terms of the deal by extending the period during which it could negotiate with other bidders, The Wall Street Journal reported Thursday.
