Edgar Bronfman Jr.’s offer for a controlling stake in Paramount Global could keep Shari Redstone close to the company, if his bid is successful.
Bronfman is open to having Redstone, currently non-executive chairman at Paramount, remain involved with the company if the Paramount special committee accepts his consortium’s bid for National Amusements, the controlling shareholder, according to a person familiar with the matter.
Both Bronfman’s bid and Skydance’s bid would also include money to buy out a percentage of Paramount Global common shareholders.
At $6 billion, Bronfman’s bid would give cash to about 20% of Class B holders at $16 per share.
The Paramount Global special committee will determine if Bronfman’s offer is a superior proposal for shareholders by Aug. 28.
One of the individuals who is part of Bronfman’s bid is former AOL CEO Jon Miller, suggesting Redstone could potentially have more control over a future Paramount Global than she’d get with Skydance.
Redstone has not spoken with Miller about the bid, according to people familiar with the matter.
Spokespeople for Redstone, Bronfman, the Paramount Global special committee and Skydance all declined to comment.
Edgar Bronfman Jr. If his bid for a majority share in Paramount Global is accepted, it might keep Shari Redstone associated with the business.
According to someone familiar with the situation, if the Paramount special committee approves Redstone’s consortium’s offer for National Amusements, the controlling shareholder, Bronfman is willing to allow Redstone, who is currently the non-executive chairman of the company, to continue serving in that capacity.
Those familiar with the situation say that Bronfman has raised $6 billion to challenge Skydance Media for ownership of National Amusements, the holding company that Sumner Redstone founded. Bronfman’s and Skydance’s bids included funds for the purchase of a portion of Paramount Global’s common stockholders.
At $16 per share, roughly 20 percent of Class B holders would receive cash under Bronfman’s $6 billion bid. As part of its bid, Skydance would compensate roughly half of the current Paramount common investors at $15 per share, according to those with knowledge of the matter.
If Redstone has a preference between the two offers, it’s unclear. By August, the special committee of Paramount Global will decide whether Bronfman’s offer is a better option for shareholders. 28. The committee will then give Skydance four business days to match if it determines that Bronfman’s offer is superior. September is the deadline for finishing the entire process. 5.
With Skydance having agreed to an $8 billion deal to merge with Paramount Global last month, Bronfman still has a few days left to raise additional funds for a rival bid. Prior to reviewing Bronfman’s initial bid, the special committee had a 15-day window to consider competing offers, which was known as the “go-shop” period. This extension was made earlier this week.
Former AOL CEO Jon Miller is among those supporting Bronfman’s bid, implying that Redstone might have greater influence over a future Paramount Global than she would with Skydance. According to those familiar with the situation, Miller, a close ally of Redstone’s, has been putting Bronfman in touch with possible investors and would probably take on a role in the business if it were under Bronfman’s direction, possibly a board position and an operational position. According to the people, if Bronfman’s deal is approved and executed, he will become the company’s CEO.
Together, Miller, Redstone, and Redstone’s son-in-law, Jason Ostheimer, manage Advancit Capital, a tiny venture capital company that makes investments in technology and digital media. On the company’s website, there are only three individuals listed. According to people familiar with the situation, Miller has also served as Redstone’s de facto strategic advisor for a long time.
People with knowledge of the situation claim that Redstone has not discussed the bid with Miller.
Though the Redstone and Bronfman families have shared commonalities, such as making significant donations to Jewish foundations, Edgar Bronfman Jr. Two of the individuals stated that and Shari Redstone haven’t gotten together much or had a close relationship before.
Speaking with people familiar with the situation, Redstone’s possible continued ownership stake in a combined Skydance-Paramount Global has been discussed on multiple occasions with Skydance CEO David Ellison.
Unaware of Paramount Global’s ownership, a person familiar with Redstone’s thinking says she is waiting to see how far she wants to go with any potential future involvement.
There was no comment from the spokespeople for Skydance, Paramount Global special committee, Bronfman, or Redstone.
