On Friday, Paramount Global received a new acquisition offer from Project Rise Partners (PRP), amounting to $13.5 billion, which challenges the existing $8 billion bid by Skydance Media and RedBird Capital Partners (WA:CPAP), according to a report from Variety. PRP's proposal represents a significant increase over their previous bid made during the go-shop window and offers a substantial premium on Paramount's B shares.
The legal letter from PRP, crafted by Baker & Hostetler, was sent to Paramount's board and highlights the market's unfavorable response to the Skydance transaction. PRP is now willing to pay $19 per share for the B shares, a 75% premium and 27% higher than the $15 per share offered by Skydance. The price for the A shares under the PRP bid remains consistent with Skydance's offer. Moreover, PRP plans to infuse an additional $2 billion into Paramount's balance sheet, emphasizing that this is an all-cash proposal backed by credible investors with committed financing.
During the go-shop period in August, more than 50 third parties were contacted by representatives of the Special Committee to gauge interest in acquiring Paramount. This period, as stipulated in the transaction agreement with Skydance Media, has concluded for all parties.
The new bid from PRP comes as a significant development as Skydance Media and RedBird Capital Partners work to finalize the takeover supported by Larry Ellison. PRP's enhanced offer aims to sway Paramount's board by presenting more favorable terms than the current deal on the table. The consortium's latest move adds a fresh dynamic to the ongoing acquisition discussions surrounding the renowned media conglomerate.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.