Paramount Global Extends Deadline to Review Edgar Bronfman Jr.’s Takeover Offer

Introduction

Paramount Global (PARA) has announced that its special committee has extended the “go-shop” deadline to September 5th as it reviews the latest takeover bid by Edgar Bronfman Jr. This bid may potentially trump Skydance Media’s accepted offer. This article will discuss the details of the bid and its potential impact on Paramount Global.

Bronfman’s Offer

According to The Wall Street Journal, Edgar Bronfman Jr. has raised his offer for Shari Redstone’s media empire to $6 billion. This offer includes Paramount controlling shareholder National Amusements and a minority stake in the entertainment giant. Bronfman’s new bid exceeds his previous offer of $4.3 billion. The new offer also includes $1.7 billion for a tender offer that would allow non-Redstone, nonvoting Paramount shareholders to cash out at a premium of $16 a share.

Skydance Media’s Offer

David Ellison’s Skydance Media had previously agreed to a deal with Redstone worth more than $8 billion. This deal involved buying National Amusements and merging Skydance with Paramount. However, Bronfman’s new offer has the potential to surpass Skydance Media’s accepted offer.

Market Reaction

Following the news of Bronfman’s increased offer, Paramount shares rose 1.3% to $11.23. However, the shares have lost almost a quarter of their value this year. The market is closely watching the developments surrounding the takeover bid as it could significantly impact Paramount Global’s future.

Conclusion

Paramount Global’s special committee has extended the “go-shop” deadline to review Edgar Bronfman Jr.’s takeover offer. Bronfman’s increased bid of $6 billion for Paramount controlling shareholder National Amusements and a minority stake in the entertainment giant has the potential to trump Skydance Media’s accepted offer. The market is closely monitoring the situation as it could have a significant impact on Paramount Global’s future.