Edgar Bronfman Jr., the former chairman of Warner Music, is still interested in acquiring some or all of Paramount Global, according to numerous reports published by media outlets this week.
His interest comes during a 45-day “go shop” period by which Paramount’s executives and board of directors are allowed to weigh other offers for the company, following an earlier decision to accept a three-way merger and acquisition bid from Skydance Media and National Amusements.
The merger plan involving Skydance is now subject to a proposed class-action lawsuit filed by a Paramount common stock shareholder, who argues that it stands to substantially benefit National Amusements and its owner, Shari Redstone, while footing Paramount’s minority shareholders with the bill.
If Paramount moves forward with another offer, it would be liable for a $400 million break-up payment to Skydance. Presumably, a bid from another interested party would have to consider that payment.
Skydance is willing to pay $2.4 billion in cash for National Amusements, then use Paramount’s stock and an additional $1.5 billion in cash to merge the production company with the entertainment giant.
Bronfman’s bid is around $2 billion to $2.5 billion for National Amusements, according to reports, which would give him majority control of Paramount’s common stock. His plans beyond that purchase were not immediately clear.
IAC founder Barry Diller and Allen Media founder Byron Allen have also expressed interest in acquiring some or all of Paramount over the past two years, though Diller recently told reporters that IAC is no longer considering a play for the company. Paramount executives have expressed skepticism over Allen’s ability to finance a bid.
