Paramount shares rose after falling on Monday on speculation that Edgar Bronfman Jr. might raise an already attractive offer to win the bidding battle for the embattled media giant.
The veteran media executive reportedly increased his bid for minority stakes in National Amusements and Paramount Global to $6 billion from an initial $4.3 billion last week, marking the latest development surrounding the company’s future.
But Bronfman “may well raise his bid again,” CNBC’s David Faber said on “Squawk Box” on Monday.
Shares in Paramount, which owns film studio Paramount Pictures, CBS, MTV and Nickelodeon, were up 0.6 percent to $11.40 in midday trading despite questions about the certainty of the tentpole’s financing.
While Bronfman has secured all of his investors, he is still working on getting final signatures on the financing package. Bloomberg It was reported on Saturday
Bronfman’s last-minute offer threatens to derail a proposed deal between Shari Redstone and tech magnate David Ellison’s Skydance Media.
According to the report, Paramount’s special committee has until Wednesday to decide whether Bronfman’s bid is superior, and if so, Skydance has four business days to respond.
As part of Bronfman’s proposal, the Seagram liquor fortune heir and former CEO of Warner Music Group said he was open to keeping Redstone, who owns 77 percent of National Amusements, involved in Paramount Global.
He also plans to partner with Apple and Amazon to improve Paramount’s streaming business, centered around its Paramount+ streaming service, according to Bloomberg.
Bronfman’s $6 billion offer reportedly includes $1.7 billion for a tender offer that would give non-voting Paramount shareholders other than Redstone the option to cash out at a premium of $16 per share.
In response, Paramount has an agreement with Skydance to purchase its Class B shares for $4.3 billion at $15 per share in cash.
Bronfman’s proposal has angered Skydance, which has accused Paramount’s special board of directors of violating the terms of the deal by extending the negotiating period with other bidders for the company. The Wall Street Journal reported. last weekend.
The move came after lengthy negotiations between Skydance and its president, Mr. Ellison, the 41-year-old son of billionaire Oracle co-founder Larry Ellison.
Ellison has his father’s backing to merge Skydance and Paramount to create a larger media empire, and he has partnered with RedBird Capital and private equity firm KKR to provide a $1.5 billion cash infusion to help the media giant pay down its debt.
