Paramount Extends Negotiating Window As Edgar Bronfman Jr. Raises Bid to $6 Billion
Paramount Global has extended the go-shop window under its $8 billion merger agreement with Skydance Media following a competing offer from former Warner Music Group CEO Edgar Bronfman Jr., according to the New York Times.
The window was initially set to expire at 11:59 p.m. on Wednesday evening. Under the provision in the Skydance deal, talks with a rival bidder can be extended to Sept. 5 in the event that Paramount’s independent special committee has “determined in good faith is or would reasonably be expected to lead to a Superior Proposal.”
If Bronfman Jr. were to reach an agreement that Skydance doesn’t match or exceed, Paramount would be on the hook to pay David Ellison a $400 million break-up fee.
The extension comes as The Wall Street Journal reports that Bronfman has raised his bid to $6 billion, up from a previous $4.3 billion offer made earlier this week. The outlet notes that the new bid includes a $1.7 billion tender offer that would give Paramount’s non-voting shareholders a cash-out option at a premium of $16 per share.
Representatives for Bronfman Jr. and Paramount did not immediately return TheWrap’s request for comment.
In his initial offer letter for the $4.3 billion bid, Bronfman told the special committee that members of his investor group would be prepared to commit $5 billion in capital.
That group includes SP Neptune Holdings, LLC, Bronfman Aggregator LLC, “Baby Geniuses” producer Steven Paul, Patrón cofounder John Paul DeJoria, cryptocurrency mogul Brock Pierce, Kazakh investor Nurali Aliyev, Fortress Investment Group, Keith Frankel, Simon Falic, Alan Mruvka, The Roundtable LLC Series 154, Brian Koo, Homan Simian, LAC Leman Media II, LP, Jonathan Miller, WTT Investments, Jeff and Laura Ubben and BC Partners Advisors L.P.
The Journal reports that its unclear if Bronfman has secured financing. The new offer letter lists two and a half pages of individuals and institutions, including Roku and Len Blavatnik’s Access Industries, as “permitted equity financing sources.”
More to come…
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