According to multiple media reports, businessman Edgar Bronfman Jr. has made a rival bid of $4.3 billion U.S. for entertainment company Paramount Global (PARA).
Bronfman, who is from one of Canada’s wealthiest families, has offered to purchase National Amusements, the company that holds a controlling interest in Paramount Global.
The offer from Bronfman includes $2.4 billion U.S. in debt and equity for National Amusements, along with contributing $1.5 billion U.S. to Paramount’s balance sheet.
The competing bid from Bronfman comes a month after privately held Skydance Media reached a deal to purchase Paramount Global and effectively merge the two companies into a larger publicly traded concern.
The Skydance deal includes a 45-day period wherein Paramount Global can solicit other offers. That period ends on Aug. 21.
However, if Paramount Global chooses Bronfman’s offer, or that of another bidder, it must pay Skydance Media a $400 million U.S. break-up fee.
Bronfman has experience running media companies having previously served as the chief executive officer (CEO) of Warner Music Group from 2004 to 2011.
The Reuters news agency and The Wall Street Journal newspaper are each reporting that a special committee of Paramount’s board of directors will evaluate Bronfman’s offer.
Paramount Global is one of the world’s largest entertainment companies and runs the Paramount Pictures film studio, Paramount+ streaming service, CBS television network, as well as specialty channels such as MTV and Comedy Central.
The stock of Paramount Global has declined 24% over the last 12 months and currently trades at $11.07 U.S. per share.
