Edgar Bronfman Jr.
Cameron Costa | CNBC
Edgar Bronfman Jr. offers up bid Paramount The corporate’s particular committee requested its consortium to submit a closing provide on Monday, individuals conversant in the matter mentioned.
Initially, Bronfman believed he had till the tip of Tuesday to shut the financing, however the deadline was moved up a day to offer the particular committee and its monetary adviser, Centerview Companions, sufficient time to conduct due diligence on the acquisition, individuals conversant in the matter mentioned. , because the dialogue was non-public. The particular committee has till Wednesday to resolve whether or not Bronfman’s bid is best than the prevailing merger settlement with David Ellison’s Skydance Media. For those who do that, Skydance could have 4 working days to match the quote.
The event introduced an abrupt finish to Paramount’s months-long deal course of, which had concerned many twists and turns.
Only a week after Bronfman made an preliminary $4.3 billion provide to Paramount controlling shareholder Sally Redstone Nationwide Leisure, he backed away from the bid on the eleventh hour. A part of the tender provide contains the acquisition of a minority stake in Paramount.
Bronfman’s bidding consortium contains establishments similar to Fortress Funding Group and the credit score arm of BC Companions, in addition to a bunch of high-net-worth people. Bronfman mentioned in a letter to Paramount’s particular committee final week that he has assembled 19 monetary backers, the primary of many “Wall Street Journal” reports.
A few of these potential buyers have just lately pulled out of their investments, fearing that particular non-public particulars about their financing may turn out to be public by means of potential media leaks, based on two individuals conversant in the matter. Skydance is legally required to study the small print of Bronfman’s bid in the course of the bidding course of, and a few bidders concern the Skydance group will proactively leak info to the media, individuals conversant in the matter mentioned. Others left due to time constraints to offer monetary info, individuals conversant in the matter mentioned.
Bronfman had deliberate to boost his bid to about $6 billion, however after some potential buyers withdrew, the quantity raised as of Monday was nearer to $5 billion, individuals conversant in the matter mentioned. Bronfman determined to withdraw the provide after it grew to become clear his consortium wouldn’t be capable to present paperwork to Paramount’s choose committee in time for correct evaluation, individuals conversant in the matter mentioned.
Spokespeople for Bronfman, Skydance and the Paramount Choose Committee declined to remark.
One of many individuals mentioned Bronfman’s bid would match Skydance’s bid, paying $23 per share to Class A holders. It is going to additionally provide money to some Class B shareholders at $16 a share, though the quantity raised for widespread shareholders is billions lower than Skydance’s provide, which provided Paramount Money at $15 a share. Frequent shareholders paid roughly 50%, equal to a complete consideration of $4.5 billion in money offered to public shareholders.
Skydance’s provide is backed by non-public fairness agency RedBird Capital Companions and in addition features a $1.5 billion injection into Paramount’s stability sheet.
With Bronfman out, the trail is evident for Skydance to merge with Paramount. The particular committee mentioned late Monday that the inspection interval was now over.
The transaction is predicted to shut within the first half of 2025, pending regulatory approvals.
Paramount shares fell greater than 6% in afternoon buying and selling Tuesday.
WATCH: Skydance should show over time that it could actually change Paramount’s future trajectory
