Former Warner Music Chairman Edgar Bronfman Jr. is in talks with bankers about a possible bid for Paramount Global’s parent company, National Amusements. Axios reported Tuesday, citing sources.
David Ellison’s Skydance Media struck a deal to buy Paramount earlier this month that included a 45-day “negotiation period” to find better terms.
If Paramount receives another offer that Skydance doesn’t match, the company will have to pay a $400 million penalty.
Skydance and its deal partners will acquire National Amusements for $2.4 billion in cash. Ellison’s media company would then merge with Paramount, offering shareholders $4.5 billion in cash or stock and bringing an additional $1.5 billion to Paramount’s balance sheet.
Bronfman was seeking to make a $2 billion to $2.5 billion bid for National Amusements, the private company in which the Redstone family holds a controlling stake in Paramount.
Paramount declined to comment on the Axios report. A spokesman for Bronfman told Reuters he was currently considering his options.
CNBC reported last Friday that billionaire Barry Diller suggested his digital media conglomerate IAC had dropped out of the race to buy Paramount, saying he would be “shocked” if there wasn’t a massive amount of litigation surrounding the proposed merger.
The merger with Skydance Media is currently facing a court challenge after Paramount investor Scott Baker filed a lawsuit last week to block the deal, citing low dividends to shareholders.
