Media investor raises Paramount Global bid to $6B

Media investor Edgar Bronfman Jr. raised his offer to take control of CBS parent Paramount Global to $6 billion, according to people familiar with his proposal, potentially upsetting the company’s plan to merge with independent producer Skydance Media.

The bid tops a $4.3 billion proposal he made on Aug. 19. In addition to seeking to buy National Amusements Inc., the Redstone family holding company that controls Paramount, for about $2.4 billion, Bronfman would use the remaining funds mostly to buy Paramount shares, according to the people, who asked not to be identified discussing private deliberations.

The Wall Street Journal reported on the new bid earlier Wednesday.

Paramount has already accepted an offer from Skydance, the film and TV company led by technology heir David Ellison. As part of their agreement, the company could solicit and consider other offers until midnight Wednesday. 

The company extended that period until Sept. 5, to consider Bronfman’s proposal, but not others, according to a statement late Wednesday. Representatives of a special board committee running the sale process contacted more than 50 parties to gauge interest in offers, the company said.

“There can be no assurance this process will result in a superior proposal,” Paramount said.

Bronfman’s initial bid matched what Ellison had agreed to pay for Shari Redstone’s National Amusements. 

But his offer differs from the Skydance proposal in several respects. Ellison intends to merge his Skydance film studio into Paramount at a $4.75 billion valuation, something Bronfman is arguing will result in dilution for shareholders. Bronfman has also proposed eliminating Paramount’s dual-share class structure, giving all investors a vote in company affairs. 

Ellison is offering to spend $4.5 billion purchasing existing Paramount shares and commit $1.5 billion to reducing the company’s debt.

With his new offer, Bronfman is proposing to buy $3.2 billion in shares from Paramount investors, with any money left over getting invested directly in the company.