Paramount Merger Shakeup: Ex-Warner CEO’s $6B Bid Sparks Hollywood Bidding War

Paramount Merger Disrupted by Last-Minute Bid from Former Warner Music CEO

In a surprising turn of events, Edgar Bronfman Jr., the former CEO of Warner Music Group, has submitted a bid that threatens to derail Paramount’s planned merger with Skydance Media. The unexpected offer came just as the deal was nearing finalization, injecting new uncertainty into the high-stakes media landscape.

Paramount Global and Skydance Media had announced their intention to merge in July, following a complex negotiation process. The deal, which would have seen Shari Redstone’s controlling stake in Paramount sold to David Ellison’s Skydance Media, was set to create what was being called the “New Paramount.”

As part of the merger agreement, a 45-day “go-shop” period was established, allowing Paramount to entertain offers from other potential bidders. It was during this window that Bronfman Jr., now chairman of sports streaming company Fubo, made his move.

According to reports from The Wall Street Journal, Bronfman Jr. initially offered $4.3 billion for Redstone’s stake in Paramount. Sources close to the matter indicate that he later increased his bid to $6 billion, prompting Paramount’s special committee to extend the “go-shop” deadline to give proper consideration to the new offer.

This development sets the stage for a potential bidding war. Skydance now has until September 5 to improve its offer, with the backing of the Ellison family, including billionaire Larry Ellison. Meanwhile, Bronfman Jr. and his investors, which reportedly include private equity firms like Fortress Investment Group, are preparing for a fierce competition.

Adding an intriguing twist to the story, crypto investor Brock Pierce, known for his role as a child actor in the “Mighty Ducks” franchise, is also said to be involved in Bronfman Jr.’s bid.

As the media industry watches this unfolding drama with keen interest, spokespersons for both Bronfman and Skydance have declined to comment on the situation. The outcome of this high-stakes bidding process could significantly reshape the landscape of one of Hollywood’s most storied studios.