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Shares of Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) experienced a slight surge in pre-market trading on Thursday in the wake of news that media magnate Edgar Bronfman Jr., chairman of Endeavor Capital, has escalated his acquisition bid to $6 billion.
What Happened: Bronfman has reportedly amplified his offer for Paramount’s controlling shareholder, National Amusements, and a minority stake in Paramount, as per Wall Street Journal on Thursday. This bid marks a significant leap from his prior offer of $4.3 billion.
According to Benzinga Pro, at the time of writing. Paramount’s Global Class A PARAA was trading 2.50% while its Global Class B Stock was up by 3.43%.
Paramount acknowledged the receipt of an acquisition proposal from Bronfman on behalf of a group of investors on Wednesday. The company, however, did not reveal the terms of the offer. Paramount's special committee also declared a 15-day extension to the "go shop" period of its merger agreement with Skydance, as it scrutinizes Bronfman’s rival offer.
Bronfman’s updated bid encompasses $3.2 billion in funds that can be utilized to settle Paramount’s debt or to acquire non-voting Paramount shares held by investors outside the Redstone family. The board and the Bronfman-led investor group will determine the allocation of these funds.
Bronfman’s new offer poses a potential disruption to a planned acquisition by tech heir David Ellison and his company Skydance Media. If successful, Bronfman’s bid would cover a $400 million break fee owed to Skydance.
The special board committee has extended the deadline until Sept. 5 for Bronfman’s consortium, Paramount announced.
Why It Matters: Earlier this month, Bronfman was reportedly in talks with various individuals and companies to support his bid, including Fortress Investment Group and Hollywood producer Steven Paul.
Two days ago, Bronfman submitted a bid of $4.3 billion, planning to raise more in the coming days as the deadline for Paramount bids approached. This move intensified the bidding war with Skydance and National Amusements, which had previously agreed to a $28 billion merger.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
