Edgar Bronfman Jr. still pursuing a deal for Paramount, Axios reports (updated)

People Incorporated

30/07/2024 18:31

(Adds response from Bronfman in paragraph 6)
       July 30 (Reuters) - Former Warner Music chairman Edgar
Bronfman Jr. is still in talks with bankers about a potential
bid for Paramount Global's  PARA.O  parent, National Amusements,
Axios reported on Tuesday, citing sources.
    David Ellison's Skydance Media had struck a deal earlier
this month to acquire Paramount, which included a 45-day "go
shop" window to find a better offer.
    If Paramount receives another offer, which Skydance does not
match, it would pay a $400 million break-up fee.
    Skydance and its deal partners would acquire National
Amusements for $2.4 billion in cash. Ellison's media firm would
subsequently merge with Paramount, offering $4.5 billion in cash
or stock to shareholders and providing an additional $1.5
billion for Paramount's balance sheet.
    Bronfman was looking to offer between $2 billion and $2.5
billion for National Amusements, the private company that holds
the Redstone family's controlling interest in Paramount.
    Paramount declined to comment on the Axios report. A
spokesperson for Bronfman told Reuters that he is currently
considering his options. 
    CNBC reported last Friday that billionaire Barry Diller
signaled his digital-media conglomerate IAC  IAC.O  was no
longer in the race to buy Paramount and that he would be
"shocked" if there was not a huge amount of litigation on the
planned merger.
    The merger with Skydance Media was met with a court
challenge last week after Paramount's investor Scott Baker sued
to block the deal citing lower payout for shareholders.

 (Reporting by Harshita Mary Varghese; Editing by Shilpi
Majumdar)
 ((HarshitaMary.Varghese@thomsonreuters.com))