{"id":631706,"date":"2024-08-22T02:30:28","date_gmt":"2024-08-21T23:30:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/paramount-signals-closer-consideration-of-edgar-bronfmans-bid\/"},"modified":"2024-08-22T02:30:28","modified_gmt":"2024-08-21T23:30:28","slug":"paramount-signals-closer-consideration-of-edgar-bronfmans-bid","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/paramount-signals-closer-consideration-of-edgar-bronfmans-bid\/","title":{"rendered":"#Paramount Signals Closer Consideration of Edgar Bronfman\u2019s Bid"},"content":{"rendered":"
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\n A last-minute overture for Paramount Global is getting more serious consideration from Shari Redstone and the company\u2019s special committee of the board of directors.<\/p>\n

\n The multibillion-dollar bid from a group led by Edgar Bronfman, Jr. has arrived before the 45-day \u201cgo-shop\u201d window for Paramount to evaluate alternate acquisition proposals ended on Aug. 21. The window has been extended, signaling that bid is being taken seriously as Redstone evaluates whether to go with an offer led by the heir to the Seagram family liquor fortune, Bronfman, or the heir to the Oracle software family fortune, David Ellison.<\/p>\n

\n Paramount\u2019s special committee of the board of directors, which was organized to evaluate deal proposals, confirmed that \u201cthe receipt of an acquisition proposal from\u00a0Edgar Bronfman, Jr., on behalf of a consortium of investors\u201d qualified for consideration enough to extend the \u201cgo-shop\u201d window until\u00a0September 5, 2024.<\/p>\n

\n The extension for a potential deal arrives as Bronfman raised his offer for a stake in Paramount and control of National Amusements from $4.3 billion to $6 billion, according to a Wall Street Journal<\/em> report<\/a>. A rep for National Amusements declined to comment.<\/p>\n

\n On July 7, Skydance and Paramount said that they had agreed to a merger proposal that would include the Ellison family and Gerry Cardinale\u2019s RedBird Capital Partners investing $2.4 billion to buy Redstone\u2019s holding company National Amusements. The bid would value a merged Skydance-Paramount at $28 billion if the deal closes. <\/p>\n

\n Additionally, for Paramount stockholders, $4.5 billion would be allocated <\/em>\u201cfor the stock\/cash merger consideration to be paid for publicly traded Class A shares and Class B shares, as well as $1.5 billion of primary capital to be added to Paramount\u2019s balance sheet, the companies said. The Santa Monica-based Skydance plans to install former NBCUniversal chief Jeff Shell if the merger closes. <\/p>\n

\n When the special committee said it unanimously app<\/a>roved Paramount\u2019s merger with David Ellison\u2019s Skydance Media<\/a> on July 7 it specified how the \u201cgo-shop\u201d window would work.\u00a0\u201cThere can be no assurance that this process will result in a superior proposal, and the Company does not intend to disclose developments with respect to the go-shop process unless and until it determines such disclosure is appropriate or is otherwise required,\u201d this board said in a statement. If Paramount decides to call off its merger with Ellison\u2019s company, it would be required to pay a $400 million breakup fee.<\/p>\n

\n Bronfman, the heir to The Seagram Company\u2019s liquor fortune, has run Universal Studios as well as Warner Music Group and held longtime board of director roles at multiple companies, including Barry Diller\u2019s IAC. He also founded venture firm Waverley Capital.<\/p>\n

\n As employees wait for the merger and acquisition showdown to resolve, Paramount has been in a holding pattern, led by its trio of CEOs George Cheeks, Brian Robbins and Chris McCarthy. The company has identified $500 million in cost savings and is reducing its U.S.-based workforce by 15 percent. Year-to-date, Paramount stock has fallen about 24 percent.<\/p>\n

\n CFRA Research analyst Ken Leon maintained his \u201chold\u201d rating and $12 stock price target on Paramount on Tuesday after news<\/a> of the Bronfman bid. \u201cWe think there are greater fundamental synergies with Skydance, and the final word comes from Shari Redstone, non-executive chair of Paramount and controlling shareholder,\u201d he wrote. \u201cWe believe the greatest assets for Paramount reside within film production. Skydance remains an integral partner with Paramount on blockbuster movie franchises, such as Mission Impossible<\/em>, Top Gun: Maverick<\/em>, Transformers<\/em>, and other movies<\/a>.\u201d<\/p>\n

\n Early on Wednesday, LightShed Partners analysts Richard Greenfield, Brandon Ross, and Mark Kelley shared a different take though, noting at least one back of the Bronfman bid with a Redstone connection.<\/p>\n

\n \u201cUnless the Redstone family wants Bronfman to bid, why would Bronfman be wasting all this time and effort, let alone rounding up nearly 20 outside investors to help him acquire Paramount?\u201d the analysts asked. \u201cMaybe the Redstones have had second thoughts about selling to Skydance\/Ellison? Remember, just before the Skydance deal was reached, it appeared the entire transaction had collapsed.\u201d<\/p>\n

\n The team concluded: \u201cOr maybe this is all an elaborate ploy to drive up the price on Skydance\/Ellison and force them to increase their bid. Or perhaps it is simply a way to diminish the legal risk of shareholder lawsuits associated with accepting the Skydance\/Ellison bid. We honestly do not know.\u201d\u00a0<\/p>\n<\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A last-minute overture for Paramount Global is getting more serious consideration from Shari Redstone and the company\u2019s special committee of the board of directors. The multibillion-dollar bid from a group led by Edgar Bronfman, Jr. has arrived before the 45-day \u201cgo-shop\u201d window for Paramount to evaluate alternate acquisition proposals ended on Aug. 21. The window…<\/p>\n","protected":false},"author":1,"featured_media":631707,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2024\/08\/GettyImages-2160736149.jpg?w=1296&h=730&crop=1","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[134879],"class_list":["post-631706","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-mediaa","tag-paramount-global"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/631706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=631706"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/631706\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/631707"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=631706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=631706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=631706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}