Media executive Edgar Bronfman Jr., chairman of FuboTV and former CEO of Warner Music Group, is looking to hijack Skydance’s takeover of entertainment and media giant Paramount Global.
According to a report by The Wall Street Journal, Bronfman made a $4.3 billion bid for National Amusements, the controlling shareholder of Paramount.
Reportedly, Bronfman’s bid is composed of $2.4 billion in debt and equity for National Amusements, a $1.5 billion contribution to Paramount’s balance sheet, and a $400 million breakup fee for Skydance. He secured the funding by teaming up with “high-net-worth individuals and family offices” and partnering with producer Steven Paul.
Bronfman’s bid for Paramount is believed to be similar in value to the one put together by Skydance but comes with one key distinction. It isn’t an all-stock bid, meaning there will be no dilution for the existing Paramount shareholders.
A special committee formed by Paramount will have a meeting this week to evaluate Bronfman’s offer and determine whether it is credible and has a chance of succeeding.
After the news about Bronfman’s bid came out, the Class B shares of Paramount Global went down by 1.17%. At $10.94 per share, the company’s stock is currently 24.03% down year-to-date.