Paramount Extends Deadline to Consider $4.3B Rival Bid, Merger Fate Hangs in Balance

Paramount Global Extends “Go Shop” Period Amid Competing Bid

Paramount Global’s future remains uncertain as the company’s special committee announced a 15-day extension of its “go shop” period to review a competing offer from Edgar Bronfman Jr. The move comes in response to Bronfman’s initial $4.3 billion bid for National Amusements, Paramount’s controlling shareholder.

The extension, which now runs until September 5, 2024, allows the committee to evaluate Bronfman’s proposal, which aims to supersede Paramount’s existing merger agreement with Skydance Media. The special committee confirmed receipt of the acquisition proposal from Bronfman on behalf of a consortium of investors.

During the initial “go shop” period, the committee contacted over 50 third parties. However, they emphasized that there is no guarantee the process will result in a Superior Proposal. For all other parties, the “go shop” period will expire as originally scheduled, before midnight Wednesday.

The Skydance deal, backed by RedBird Capital Partners and KKR, involves an $8 billion investment into Paramount and the acquisition of National Amusements. This agreement values National Amusements at $2.4 billion, with $1.75 billion in equity. Under this deal, Paramount’s class A shareholders would receive $23 per share in cash or stock, while class B shareholders would get $15 per share.

Bronfman’s initial bid proposed acquiring National Amusements for $1.75 billion in equity, matching a $1.5 billion investment into Paramount’s balance sheet, and covering a potential $400 million breakup fee owed to Skydance. Reports suggest Bronfman has since raised additional funds to support a higher bid.

The merger agreement has faced scrutiny from shareholders, with money manager Mario Gabelli reportedly filing a lawsuit seeking access to Paramount’s books related to the Skydance deal. Additionally, investor Scott Baker has reportedly sued to block the deal, arguing it would cost shareholders $1.65 billion.

As the extended “go shop” period unfolds, all eyes remain on Paramount Global’s next moves in this high-stakes corporate drama.