Brown-Forman is bidding for a takeover of Paramount Global (PAR.US), raising its bid to $6bn.
1min read Edgar Bronfman Jr. is poised to raise his bid for Paramount Pictures (PAR.US) to $6bn, potentially derailing a merger with Skydance Media.
The offer, which exceeds a $4.3bn bid made on August 19, also includes a plan to buy Paramount shares and reduce its debt with the remaining funds, according to a person familiar with the matter.
Paramount has already accepted a bid from Skydance, a film and television company led by David Ellison, and as part of the deal, Skydance has until 11.59pm on Wednesday to seek and consider other offers, according to reports.
Mr Bronfman’s initial offer was roughly equivalent to the $4.7bn Mr Ellison agreed to pay for National Amusements, the controlling family of Paramount, and he has also fulfilled Mr Ellison’s promise to reduce Paramount’s debt by $1.5bn.
His proposal differs from Mr Ellison’s in several ways. Mr Ellison wants to merge his film studio, Skydance, into Paramount at a $4.7bn valuation, which Mr Bronfman believes would result in a dilution of shareholders’ stakes.
Mr Bronfman also proposes to eliminate Paramount’s dual-class structure, giving all investors a vote in the company’s affairs.
Mr Ellison also proposed a $4.5bn cash offer for Paramount’s existing shares, while Mr Bronfman’s new bid is to buy the stock from Paramount’s investors.
