Paramount Global (PAR.US) is expected to acquire Skydance the day before the announcement of the Brown Harris release or possibly with a higher bid
Paramount Global (PAR.US) has agreed to merge with Skydance Media, owned by David Ellison, but may extend the deadline for other bidders if it receives a better offer from Edgar Bronfman Jr. before Wednesday night, according to a person familiar with the matter.
Mr. Bronfman, a senior media investor, is expected to make a bid for Paramount, the parent company of CBS and MTV, in the next 24 hours, according to the person, who said that Paramount had reached a merger agreement with Skydance last month that included a 45-day “go shop” period during which Paramount could seek and consider other potential bids. The period is due to expire at 11:59 p.m. Eastern time on Aug. 21, but Paramount could extend it to Sept. 5 if it receives a more attractive offer, according to the agreement.
Paramount’s shares closed up slightly on Monday, at $11.07, up less than 1 percent.
As heir to Seagram, Mr. Bronfman has been poring over the financial information that Paramount has provided to potential bidders and has been in deep negotiations with several potential investors, according to the person. Bain Capital, which had discussed a potential bid for Paramount, has since withdrawn, the person said, and Roku Inc., which had also been considering a bid, has not yet made a final commitment.