Long-time media executive Edgar Bronfman Jr. - currently chair of FuboTV - has reportedly submitted a bid of roughly $4.3 billion to buy the Paramount Global broadcast heavyweight.
Such a bid, reported by the Wall Street Journal and subsequently Reuters, would represent a serious challenge to the agreement already in place - unveiled in early July - between National Amusements (which holds a controlling stake of 77% in Paramount) and the Skydance Media firm.
The offer by Bronfman, according to Reuters, includes $2.4 billion in debt and equity for National Amusements. Another $1.5 billion, meanwhile, would be added onto the Paramount balance sheet.
While the deal between National Amusements (run by Shari Redstone) and Skydance was finalized last month, it does contain a 45-day additional period from the date of signing in which Paramount can look for and assess other offers. That period, according to Reuters, ends on August 21 (tomorrow), but could be extended if necessary.
However, Paramount would have to fork out a hefty compensation fee to Skydance - reportedly as much as $400 million - if it chooses to go with a different buyer.
It has now been reported that the Paramount board will meet tomorrow to assess Bronfman’s offer and that the aforementioned period for other offers could be extended to September 5.
Media assets owned by Paramount Global include US network CBS, the UK’s Channel 5 and Network 10 in Australia, and the Paramount+ streaming service.
From a sports point of view, CBS holds rights to several major properties such as European club soccer’s UEFA Champions League, American football’s NFL, PGA Tour golf, and top-tier college sports. Earlier this year, it aired the most-watched NFL Super Bowl in history.
Neither Paramount nor Bronfman has yet issued a public comment on these reports.
Reuters has also reported that even before the Skydance-Paramount deal was reached, Bronfman had looked into buying National Amusements, but did not submit a formal offer.
In terms of his previous media sector interests, between 2003 and 2011 Bronfman owned Warner Music Group, before eventually selling it to Access Industries.
He is also chair of the FuboTV US sports-focused internet TV service, and has been since April 2020, and managing partner at the Accretive LLC private investment fund. In addition, he used to run the Seagram alcohol distillery brand.
The Paramount-Skydance deal would see David Ellison, Skydance’s founder and chief executive, come in as chair and CEO at the New Paramount vehicle.
The deal would see National Amusements being sold to Skydance for $2.4 billion after the latter firm merges with Paramount for $8 billion.
The RedBird Capital Partners investment firm has been backing that agreement.
Paramount Global’s latest set of quarterly earnings saw revenue rise by 5% to $7.69 billion, and operating losses only come to $417 million. That number was $1.23 billion a year ago.
The conglomerate was initially formed by the merger of CBS with Viacom in 2019. Redstone has been exploring a sale of Paramount since 2023 amid ongoing struggles including falling revenues and growing costs that have kept the conglomerate and its constituent businesses from profitability.
At the end of May, Paramount Global’s former president and chief executive Bob Bakish stepped down from those roles amidst tension between himself and Redstone.
