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Liquor heir Edgar Bronfman Jr. has increased his bid for Paramount Global (PARA) to $6 billion, forcing the company’s board to extend the negotiation period for their merger with Skydance Media for 15 days
Bronfman, a business magnate and media executive from the family behind liquor empire Seagram Co., put $4.3 billion on the table for National Amusements, the Shari Redstone-controlled company that owns Paramount, earlier this week.
He upped that bid Wednesday, the Wall Street Journal reported, now offering an additional $1.7 billion for nonvoting Paramount shareholders to sell their shares at $16 a piece, a premium for the company stock at opened Thursday morning at $11.20 a share.
The offer has led the Paramount board to pause its merger with David Ellison’s Skydance Media. That deal is an $8 billion offer in which Ellison would buy National Amusements, give Paramount $1.5 billion to pay its debts and use $4 billion to buy 50% of nonvoting shares at $15 each.
The “go-shop” period of the deal has been extended to September 5 thanks to Bronfman’s bigger offer.
Bronfman investors include Fortress Investment Group and BC Partners Credit, the Journal reported. He has argued the deal will please wary shareholders, who think the Skydance team is too favorable to Redstone.
The drawn-out negotiations between Paramount and Skydance appeared to be wrapping up until Bronfman made an offer this week, towards the end of the “go-shop” period. His deal includes the $400 million Paramount will owe Skydance if it reneges on the merger.
Bronfman served as CEO of Warner Music Group WMG-0.66% from 2004 to 2011, helming the company during its $3.3 billion sale to Access Industries in May 2011.
-Rocio Fabbro contributed to this article.