Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Edgar Bronfman prepares offer for National Amusements, source says

Published 08/15/2024, 01:45 PM
Updated 08/15/2024, 04:57 PM
© Reuters. FILE PHOTO: A view of Paramount Studios's water tank in Los Angeles, California, U.S., September 26, 2023. REUTERS/Mario Anzuoni/File Photo

By Anirban Sen

(Reuters) -Seagram heir and media industry executive Edgar Bronfman Jr. is preparing an offer for National Amusements, the family company that controls Paramount Global, a source familiar with the matter said.

The offer could come together in the coming days, the source added.

An offer from Bronfman would add another twist to a messy merger saga, which now stands at Paramount having accepted a deal last month from media executive David Ellison's Skydance Media.

Shares in Paramount, one of Hollywood's oldest studios, closed up 7.1% on Thursday after Bloomberg News and the Wall Street Journal reported the development earlier.

Bronfman, formerly Warner Music's chairman, has held discussions with people to back his bid, the Wall Street Journal said, including Fortress Investment Group, streaming-device maker Roku (NASDAQ:ROKU) and Hollywood producer Steven Paul.

Bronfman had expressed an interest in buying National Amusements in June and was looking to offer between $2 billion and $2.5 billion. He didn't bid.

The details of any fresh deal are still being worked out and Bronfman will frame his offer as less dilutive for Paramount's shareholders, the WSJ and Bloomberg News said on Thursday.

As part of Skydance's offer, Ellison, who founded Skydance, would become chairman and CEO of the new Paramount, after the go-shop period ends on Aug 21. If Paramount receives another offer, which Skydance does not match, Paramount would pay a $400 million break-up fee.

The Paramount-Skydance deal fell in place after months of talks that appeared to have derailed when National Amusements owner Shari Redstone abruptly called off negotiations amid disagreements over issues such as how to indemnify the controlling shareholder over potential shareholder lawsuits.

© Reuters. FILE PHOTO: A view of Paramount Studios's water tank in Los Angeles, California, U.S., September 26, 2023. REUTERS/Mario Anzuoni/File Photo

Last week, Paramount wrote down the value of its cable networks by nearly $6 billion and announced it would cut 15% of its U.S. workforce, as it navigates the decline of the cable television business.

Representatives for Bronfman, National Amusements and Paramount did not immediately respond to Reuters' requests for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.