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While the merger agreement between Paramount Global PARA+1.08% and Skydance Media remains in the “go-shop” period, the heir of liquor empire Seagram Co. has made a last-minute bid for the media giant.
Business magnate and media executive Edgar Bronfman Jr. offered $4.3 billion for National Amusements, the Shari Redstone-controlled company that owns Paramount, The Wall Street Journal reports citing people familiar with the matter.
Bronfman’s offer will include terms that are on par with those offered by Skydance, the media company founded by David Ellison the son of Oracle ORCL+0.93% founder and billionaire Larry Ellison. These include a proposal to buy National Amusements in an equity deal valued at $1.75 billion, as well as a $1.5 billion investment into Paramount, according to the Journal.
The businessman reportedly has $5 billion in financing commitments, he reportedly told Paramount’s special committee in a letter Monday.
After months of back-and-forth, Paramount and Skydance finally reached a merger agreement in early July. Under that deal, Redstone — Paramount chair and heiress to Sumner Redstone’s media empire — will turn over National Amusements for $2.4 billion. Skydance CEO David Ellison will become chairman and CEO.
But the merger isn’t set in stone quite yet. Paramount is currently in a 45-day “go-shop” period, which gives it the chance to look for a more attractive deal until Wednesday. The newest offer would also reportedly cover the $400 million breakup fee Paramount will owe if it ditches its deal with Skydance.
Bronfman is no stranger to the media world. He served as CEO of Warner Music Group WMG+0.70% from 2004 to 2011, helming the company during its $3.3 billion sale to Access Industries in May 2011.
The businessman has reportedly argued that his deal would better suit Paramount shareholders because their power wouldn’t be watered down, as it is in the all-stock Skydance deal, according to the Journal.
Paramount stock was down more than 3% in pre-market trading Tuesday, and has plunged 23% so far this year.