Bronfman moves closer to Paramount counter-bid
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Edgar Bronfman Jr. at the 2018 Tribeca Film Festival in New York City. Photo: Gary Gershoff/WireImage
Edgar Bronfman Jr. is in talks with multiple parties about advancing a bid for Paramount Global's parent company, sources tell Axios.
Why it matters: A Bronfman bid would complicate Paramount's existing $8 billion agreement to merge with Skydance Media, and add further drama to the already long and complicated sale process.
Catch up quick: Axios reported last month that Bronfman was still working with bankers on a possible last minute offer for Paramount's parent, National Amusements — the holding company run by entertainment scion Shari Redstone.
- Paramount's deal with Skydance and RedBird Capital Partners includes a 45-day go shop provision, which means a superior bid remains possible so long as it's submitted to Paramount's special committee before August 21.
- Therefore Bronfman, the former Warner Music chair and heir to the Seagram alcohol fortune, has until next week to get enough capital committed to present a bid that at least matches the terms of the Skydance deal struck.
Zoom in: Bronfman has been in touch with multiple parties about joining on a Paramount offer, sources tell Axios.
- One of those is Steven Paul, the producer behind Baby Geniuses and Ghost Rider, Bratz: The Movie, according to sources. Crystal Sky, Paul's production company, did not immediately respond to a request for comment.
- The Wall Street Journal reported that Roku and investment giant Fortress Investment Group have also had discussions about joining the effort. Previous reports said Bain Capital agreed to provide Bronfman's financial backing.
- Bronfman may decide, in the end, to back away from bidding ahead of the go-shop deadline.
Zoom out: Previous reports said Bronfman was looking to offer between $2 billion and $2.5 billion for National Amusements (NAI), which owns nearly 80% of Paramount voting shares.
- It's unclear whether Bronfman structure for a deal with NAI has shifted from his original approach, but it's possible given that the Skydance offer was for Paramount.
- A spokesperson told Axios Bronfman was considering his options last month. Representatives for Paramount and its special committee declined to comment. NAI didn't comment.
- The Skydance deal, which still requires regulatory approval, includes a $400 million break-up fee. Bronfman or any suitor able to top Skydance, would be on the hook for that fee if successful.
Between the lines: Bronfman Jr. currently serves as chair and general partner at Waverley Capital, a private investment firm that focuses on media, tech and entertainment companies. (Waverley Capital declined comment.)
- He chairs sports streaming firm FuboTV, one of Waverley Capital's portfolio companies. Bronfman Jr. led an investment group's bid for Time Inc. in 2017 that was ultimately unsuccessful.
