27 August 2024
The special committee of Paramount Global’s board that reviews takeover offers announced late Monday that its extended “go-shop” window for third-party suitors had closed after the rejection of a $6 billion offer from investor Edgar Bronfman Jr. The committee now fully supports a previously existing $8 billion deal with Santa Monica, California-based Skydance Media.
“On behalf of the Special Committee, we thank Mr. Bronfman and his group of investors for their interest and efforts,” said Charles Phillips, chairman of Paramount Global’s Special Committee, in a statement.
“After nearly eight months of thoroughly reviewing the viable opportunities for Paramount, our special committee continues to believe that the transaction we have agreed to with Skydance offers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape,” Phillips said.
Bronfman, former CEO of Warner Music Group and currently executive chairman at Fubo, entered the bidding process at the last minute, initially offering $4.3 billion for National Amusement Inc.’s majority stake in Paramount Global, which was financed with private funds. The amount rose to $6 billion when non-NAI shareholders were included. However, given the complicated financing issues, Bronfman reportedly realized he didn’t have the time to put all the pieces together and withdrew the offer.
“This evening, our auction group notified the special committee that we will be exiting the go-shop process. It was a privilege to have the opportunity to participate,” Bronfman said in a statement Monday evening.
The committee said it had contacted more than 50 companies about their interest in acquiring Paramount, whose assets include Paramount Pictures, the streaming service Paramount+, CBS, BET, MTV, Comedy Central and Nickelodeon.
