'Edgar Bronfman Jr. Still Eyeing A Paramount Deal' - Axios

Author: Benzinga Newsdesk | July 30, 2024 12:00pm

https://www.axios.com/2024/07/30/bronfman-still-eyeing-paramount-deal

 

Edgar Bronfman Jr., former Warner Music chair and heir to the Seagram alcohol fortune, is still in talks with bankers about a possible bid for Paramount's parent, National Amusements Inc. (NAI), sources told Axios.

Why it matters: Paramount struck a deal with Skydance Media and RedBird Capital Partners last month. The deal includes a 45-day "go shop" provision, which means a superior bid remains possible.

• The 45-day window will close on August 21st.
• Paramount Global said it "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."

Zoom in: Bronfman Jr.'s bid, first reported prior to the Skydance agreement, was said to be backed by private equity giant Bain Capital. Skydance is run by David Ellison, the son of billionaire Oracle founder Larry Ellison.

• Previous reports suggested Bronfman Jr. was looking to offer between $2 billion and $2.5 billion for NAI. NAI, run by scion Shari Redstone, owns nearly 80% of Paramount voting shares.
• It's unclear whether Bronfman Jr.'s current structure for a deal with NAI has shifted from his original approach, though it's likely different given the signed deal between Paramount and Skydance. He could also be eyeing a piece of Paramount.
• A spokesperson said Bronfman Jr. is considering his options.

By the numbers: The Skydance deal, which requires regulatory approval, includes a $400 million break-up fee. Bronfman Jr., or any suitor able to top Skydance, would be on the hook for that fee if successful.

• There is no guarantee a counter-offer will emerge in the go-shop. These periods rarely produce a topping bid.
• The Skydance agreement values Paramount at $8 billion. The Ellison family will invest around $6 billion, while RedBird Capital Partners will contribute the remaining $2 billion, Axios reported.

Between the lines: Bronfman Jr. is no stranger to media. He currently serves as chair and general partner at Waverley Capital, a private investment firm that focuses on media, tech, and entertainment companies.

• He chairs sports streaming firm FuboTV, one of Waverley Capital's portfolio companies. Bronfman Jr. led an investment group's bid for Time Inc. in 2017 that was ultimately unsuccessful.
• Representatives for Paramount and its special committee declined to comment. NAI and Bain Capital also declined to comment.

What to watch: Billionaire money manager Mario Gabelli filed a lawsuit to gain access to more information about the Skydance deal two weeks ago.

• Gabelli has been vocal about his concerns that the deal could enrich Redstone, the controlling shareholder, over other investors.

Posted In: PARA