Paramount shares rise as Bronfman reportedly reconsiders raising bid

Paramount’s share price slumped Monday after speculation that Edgar Bronfman Jr. could raise its already sweetened bid even higher to win the bidding war for the struggling media giant.

The veteran media executive reportedly raised his offer to $6 billion for National Amusements and a minority stake in Paramount Global last week — after initially offering $4.3 billion — in the latest twist on the company’s future.

However, Bronfman “may raise his bid again,” CNBC’s David Faber said on “Squawk Box” Monday.

Shares of Paramount — home to movie studio Paramount Pictures, CBS, MTV and Nickelodeon — rose 0.6% to $11.40 in midday trading, despite questions surrounding the security of the tycoon’s financing.

Bronfman is still working on getting the final signatures on his financial package, though he has all the investors in place, Bloomberg reported Saturday.

Bronfman’s eleventh-hour bid threatens to undo the proposed deal between Shari Redstone and Skydance Media tech David Ellison.

Now, Paramount’s special committee has until Wednesday to decide whether Bronfman’s offer is superior, and if it is, Skydance will have four business days to match it, according to reports.

As part of Bronfman’s offer, the heir to the Seagram beverage family fortune and former Warner Music Group CEO has said he is open to keeping Redstone, whose family owns a 77% stake in National Amusements, involved in Paramount Global.

It also plans to partner with Apple and Amazon to improve Paramount’s streaming business, which centers on its Paramount+ streaming service, Bloomberg said.

According to reports, Bronfman’s $6 billion offer includes $1.7 billion in a tender offer that would give non-voting and non-voting Paramount shareholders an opportunity to cash in at a $16 per share price.

That compares with Paramount’s deal with Skydance, which committed $4.3 billion to buy back Class B shares at $15 each.

Bronfman’s bid has ruffled feathers at Skydance, which accused Paramount’s special committee of directors of violating the terms of its agreement by extending the period it can engage with other bidders for the company, The Wall Street Journal reported late last week. passed.

The move follows protracted negotiations with Skydance and its boss Ellison, the 41-year-old son of billionaire Oracle co-founder Larry Ellison.

Ellison, who is getting his father’s backing to build a bigger media empire by merging Skydance with Paramount, is also partnering with RedBird Capital to secure a $1.5 billion cash infusion to help the media giant pay down debt his.