Smart Trade Insights
  • Business
  • Economy
  • Investing
  • Politics
Top Posts
Group Eleven Drills Best Hole Yet at Ballywire:...
Blue Sky Uranium Acquires Key Subsurface Data for...
Sun Summit Minerals
Aurum Resources
High grade gold in early stage drilling at...
3 Key Themes from Fastmarkets’ 2025 Lithium Supply...
Walker Lane Resources Ltd. Receives Positive Results from...
Crypto Market Recap: Coinbase Acquires Liquifi, Tether to...
Robinhood Shares Hit Record High on EU Launch...
As his feud with Trump reignites, Musk’s business...
  • Business
  • Economy
  • Investing
  • Politics

Smart Trade Insights

Business

Paramount special committee extends Skydance ‘go shop’ period as it reviews Bronfman offer

by admin August 24, 2024
August 24, 2024
Paramount special committee extends Skydance ‘go shop’ period as it reviews Bronfman offer

The future of Paramount Global is still uncertain.

Paramount’s special committee on Wednesday said it would extend by 15 days an agreed-upon “go shop” period of its merger agreement with Skydance as it reviews a competing offer from Edgar Bronfman Jr.

Bronfman initially offered $4.3 billion late Monday for Shari Redstone’s National Amusements, the controlling shareholder of Paramount, according to a person familiar with the bid. As part of the bid, Bronfman would acquire a minority stake in Paramount. However, after placing the bid, Bronfman raised more funds to support a higher bid, said the person, who asked to remain anonymous to speak about specifics of the offer.

On Wednesday, Bronfman upped the bid and submitted a revised offer of $6 billion, the person said.

The offer looks to supersede Paramount’s merger agreement with Skydance Media, which came in early July and capped off a monthslong negotiation process. The agreement included a 45-day “go shop” period during which Paramount could solicit other offers.

A representative for Bronfman declined to comment.

The special committee on Wednesday confirmed “the receipt of an acquisition proposal from Edgar Bronfman, Jr., on behalf of a consortium of investors.”

“As a result, the ‘go shop’ period is extended for the Bronfman Consortium until September 5, 2024, pursuant to the transaction agreement to which the Company remains subject,” the committee said in a statement. “There can be no assurance this process will result in a Superior Proposal. The Company does not intend to disclose further developments unless and until it determines such disclosure is appropriate or is otherwise required.”

The committee added that during the initial “go shop” period it contacted more than 50 third parties to gauge potential acquisition interest. The go-shop period will still expire before midnight Wednesday for all other parties, the committee said.

The Skydance buying consortium, which also includes private equity firms RedBird Capital Partners and KKR, agreed to invest more than $8 billion into Paramount and to acquire National Amusements. The deal gives National Amusements an enterprise value of $2.4 billion, including $1.75 billion in equity.

As part of the Skydance deal, Paramount’s class A shareholders would receive $23 apiece in cash or stock, and class B shareholders would receive $15 per share, equating to a cash consideration totaling $4.5 billion available to public shareholders. Skydance also agreed to inject $1.5 billion of capital into Paramount’s balance sheet.

National Amusements owns 77% of Paramount’s class A shares, and 5% of class B shares. If the Skydance transaction were to close, it would wholly own class A Paramount shares, and 69% of the outstanding class B shares.

Bronfman’s initial bid proposed buying National Amusements in an equity deal valued at $1.75 billion. That offer included a $1.5 billion investment into Paramount’s balance sheet, like the Skydance deal, and also included covering the $400 million breakup fee that Paramount would owe Skydance if it walked away from the deal, according to the person familiar.

The sweetened bid made on Wednesday now includes $1.7 billion for a tender offer that would give non-Redstone, nonvoting Paramount shareholders the option to receive $16 a share, the person added.

Bronfman previously ran Warner Music and liquor company Seagram and has also served as executive chairman of Fubo TV since 2020. Details of his bid were first reported by The Wall Street Journal.

The merger agreement between Paramount and Skydance has drawn scrutiny from shareholders. Money manager Mario Gabelli reportedly filed a lawsuit looking for Paramount to turn over its books related to the Skydance deal — a possible first step toward a lawsuit challenging the deal. Investor Scott Baker reportedly sued to block the deal, arguing it would cost shareholders $1.65 billion.

This post appeared first on NBC NEWS

previous post
Arizona may require proof of citizenship on state voter forms for now
next post
Peloton to start charging subscribers with used equipment $95 activation fee

You may also like

Tesla denies report that the EV maker is...

May 2, 2025

AMD CEO calls China a ‘large opportunity’ and...

May 8, 2025

Chipotle to launch Adobo Ranch dip after sluggish...

June 11, 2025

Big Lots files for bankruptcy protection as it...

September 11, 2024

Boeing starts furloughing tens of thousands of employees...

September 20, 2024

Google loses antitrust case over search

August 7, 2024

AMD launches AI chip to rival Nvidia’s Blackwell

October 11, 2024

Art created autonomously by AI can’t be copyrighted,...

March 21, 2025

Boeing factory workers strike after overwhelmingly rejecting contract

September 15, 2024

Tesla’s law firm drafts Delaware bill that could...

February 20, 2025

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Group Eleven Drills Best Hole Yet at Ballywire: 39.7m of 9.5% Zn+Pb, 131 g/t Ag and 0.27% Cu, incl. 5.6m of 16.6% Zn+Pb, 370 g/t Ag and 0.86% Cu

      July 3, 2025
    • Blue Sky Uranium Acquires Key Subsurface Data for Corcovo Uranium Project, Mendoza Province, Argentina

      July 3, 2025
    • Sun Summit Minerals

      July 3, 2025
    • Aurum Resources

      July 3, 2025
    • High grade gold in early stage drilling at Sandstone

      July 3, 2025
    Promotion Image

    banner ads

    Categories

    • Business (753)
    • Economy (829)
    • Investing (2,331)
    • Politics (737)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: smarttradeinsights.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 smarttradeinsights.com | All Rights Reserved