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Edgar Bronfman Jr. eyes potential bid for Paramount Global
A billionaire’s renewed interest
Edgar Bronfman Jr., a billionaire and former media mogul, is once again considering a potential bid for Paramount Global. This renewed interest comes amidst a significant transaction involving Paramount and Skydance Media, a company led by David Ellison. Bronfman’s representative confirmed that he is evaluating his options for a potential offer.
The Skydance-Paramount deal
On July 7, Paramount Global and Skydance Media announced a two-part transaction. This deal will see Skydance buying out Shari Redstone’s National Amusements Inc. and subsequently merging with Paramount. Paramount’s portfolio includes CBS, Paramount Pictures, Showtime/MTV Entertainment Studios, and Paramount Media Networks. The funding for this $8 billion deal includes $6 billion from the family of Oracle founder Larry Ellison and $2 billion from Gerry Cardinale’s RedBird Capital Partners.
The go-shop provision
Under the agreement, Paramount Global has a 45-day window to solicit a better offer, which expires at 11:59 p.m. ET on August 21. If Paramount opts for a rival bid, it would be required to pay a $400 million breakup fee to the Skydance investor group.
Bronfman’s previous engagements
Bronfman had previously engaged with investment firm Bain Capital for a potential offer of up to $2.5 billion for Redstone’s National Amusements. However, it remains unclear if Bain is still involved or what structure a potential bid from Bronfman might take following the Skydance-Paramount-NAI agreement.
No comments from key players
Representatives for Bain Capital, Paramount Global, and the special committee established by the Paramount board to evaluate M&A proposals have declined to comment on the matter.
Bronfman’s media legacy
Bronfman has a storied history in the media industry. He served as chairman and CEO of Warner Music Group from 2004 to 2012, stepping down after it was acquired by Len Blavatnik’s Access Industries. Before his tenure at Warner Music Group, he was the CEO of Seagram, which he sold to Vivendi. Currently, Bronfman is the executive chairman of Fubo, a sports-focused streaming pay-TV provider, and Global Thermostat LLC, a company focused on developing and commercializing technology for the direct capture of carbon dioxide.
Barry Diller’s perspective
Meanwhile, IAC chairman Barry Diller recently expressed his disinterest in pursuing Paramount. In an interview with CNBC in Paris ahead of the Summer Olympic Games, Diller stated, “I think it is over,” referring to his previous interest in Paramount. He added, “It is unwise to get in an auction with someone who has a pretty much unlimited balance sheet,” referring to Larry Ellison. Diller also mentioned his past experience, saying, “I did an auction for Paramount once. I don’t think I would do it again.” Thirty years ago, Diller was outbid for Paramount Pictures by Sumner Redstone’s Viacom, which acquired control of Paramount in a deal worth about $10 billion.
The future of Paramount Global
As the deadline for the go-shop provision approaches, the future of Paramount Global remains uncertain. Will Bronfman make a move, or will the Skydance-Paramount deal proceed as planned? The media landscape is ever-evolving, and the outcome of this potential bid could have significant implications for the industry.
For those interested in the latest developments in the world of cinema and TV series, keep an eye on this unfolding story. The potential changes at Paramount Global could impact some of your favorite networks and studios, including CBS, Paramount Pictures, and Showtime/MTV Entertainment Studios.
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