Media veteran Bronfman raises bid for Paramount takeover to $6 bn, source says
Bronfman sweetened his bid to take over Paramount Global, offering $6 billion for its controlling shareholder National Amusements and a minority stake in Paramount, according to a person familiar with the matter.
He had previously offered $4.3 billion, according to Reuters sources. Shares of Paramount rose more than 2.4% after the market closed.
Paramount said on Wednesday it had received an acquisition proposal from Bronfman on behalf of a consortium of investors, but it did not disclose the terms.
The competing offer for the home of Paramount Pictures, the CBS broadcast network and cable networks such as MTV threatens to undo a planned acquisition by tech scion David Ellison and his firm Skydance Media.
Bronfman's new bid includes $3.2 billion in funds that can be used to pay down Paramount's debt or to purchase non-voting Paramount shares held by investors other than the Redstone family for $16 cash, the person said on condition of anonymity because the information was not public.
The board and the Bronfman-led investor group would decide how to allocate those funds, the person added.
That compares to Skydance's $8.4 billion deal to take over Paramount through a complex, two-step transaction that involves Paramount acquiring Ellison's smaller independent media company in an all-stock transaction.
Ellison and deal partner Redbird Capital Partners committed $4.3 billion to buy Paramount's Class B shares for $15 cash each. The partners also pledged to provide a minimum of $1.5 billion to the company's balance
