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BFD Expert Voices - Media Deals

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Blackstone increased its offer for U.K. music firm Hipgnosis Songs Fund in a bid to win over more shareholders as part of a so-called "scheme of arrangement" deal.

Why it matters: The new deal structure increases the amount of shareholder approval needed but would also quicken the closing process, Tim writes.

Zoom in: Blackstone's revised deal, which it disclosed this morning, ups its per-share offer by a single penny (yes, really). 

The new $1.31-per-share offer now values Hipgnosis at $1.58 billion.

In a statement this morning, Blackstone said the new offer "in part reflects Hipgnosis incurring lower adviser fees in respect of the transaction than previously expected."

The deal now needs 75% of shareholders to approve; the previous deal only needed 55%. But once it reaches 75%, the deal becomes binding for the remaining 25% of shareholders.

Catch up quick: Last month, Blackstone beat out Concord for Hipgnosis, which includes the catalogs of Blondie, Shakira and the Red Hot Chili Peppers.

Concord initially thought it had a deal to buy Hipgnosis in mid-April for $1.4 billion — or $1.16 per share. It would have been the music rights firm's largest acquisition.

A few days later, Blackstone topped that offer with a $1.5 billion bid.

Just days after that, Concord came back with its $1.51 billion offer, or $1.25 per share. 

Blackstone then topped that with a $1.57 billion ($1.30 per share) bid. 

The bottom line: The final price represents a 49% premium on Hipgnosis shares from April 17, the last day of trading before the bidding war began.

Blackstone increases Hipgnosis offer to close deal sooner

1 big thing: A penny more

Illustration of a music note combined with a copyright symbol

Skydance's revised offer for Paramount includes the option for some nonvoting shareholders to cash out at $15 per share, the Wall Street Journal reported.

Why it's the BFD: The new offer represents a 26% premium of Paramount's closing price on Friday and is meant to seal a deal that's been in the works for nearly six months, Tim writes.

The big picture: Skydance's pursuit of Paramount received initial pushback from some shareholders who worried the deal would favor controlling shareholder Shari Redstone at their expense.

The new offer from David Ellison's media company gives shareholders the option of cashing out at $15 per share or rolling their stock into the new company, the WSJ reports.

A deal would involve Skydance paying $2 billion to acquire Redstone's National Amusements holding company, followed by a merger between Paramount and Skydance, with Ellison leading the combined company.

Skydance would also put $1.5 billion into Paramount's balance sheet, the WSJ said.

Paramount and Skydance declined to comment.

What's next: Paramount's annual meeting of shareholders is set for tomorrow morning.

Skydance offers $15 per B share in Paramount bid: report

2. The BFD: The Paramount dance

Photo: Eric Thayer/Bloomberg via Getty Images

Go deeper in our full database in the Axios Pro Deals Tracker.

• Tencent, the Chinese tech giant, and its music streaming subsidiary, Tencent Music Entertainment, agreed to acquire a 10% stake in Thai entertainment company GMM Music for $70m. axios.link/3R7N23C

• Dimension Studio, a British virtual production studio, received "multi-million-pound investment" from U.S. private equity firm Growth Catalyst Partners. axios.link/4bF5R6s

• Webtoon Entertainment, an online cartoon company carved out of South Korea's Naver, filed for an IPO that Renaissance Capital estimates could raise up to $500m. It plans to list on the Nasdaq (WBTN) and reports a $145m net loss on $1.28b in revenue for 2023. axios.link/4c59jHA

3. Deal flow

• Sally Buzbee will depart as executive editor of The Washington Post, with former Wall Street Journal editor Matt Murray replacing her on a temporary basis. axios.link/459IW0x

• Jennifer Turner and Nicole Norwood, the top two executives at Sony's TriStar Television, will leave the company after Sony decided to close the studio. axios.link/3X7CUvI

• Eric Bolling is leaving Newsmax after three years. axios.link/3yRSFws

4. Movin' on up (or out)

⚾ Estate of new MLB "GOAT" and Negro League legend eyes licensing deals (Axios)

"For more than half a century, the images of former players of the Negro Leagues have been used and exploited, but now families can benefit from a newfound interest in those like [Josh] Gibson, who changed the game," Russell Contreras writes.

🎙️ Spotify hikes prices of premium plans again as streaming inflation continues (THR)

"Streaming services, both audio and video, have been aggressively raising prices over the past year. While historically many services have gone a couple of years in between price hikes, the move by Spotify suggests that companies may be more aggressive in 2024 when it comes to charging more," Alex Weprin writes.

🏀 Caitlin Clark gets knocked down. She's going to get back up. (WSJ)

"Hailed as a change agent in the WNBA before she launched her first 3-pointer, bequeathed a signature Nike shoe without a signature pro performance, Clark has struggled on a weak team against a veteran-stuffed league that appears eager to give the rookie a rude reality check," Jason Gay writes.

5. Channel surfing

Illustration of a surfer with a television in the place of his head.

🤝 Situational awareness: Paramount and Skydance have agreed to terms on their merger, CNBC reported.

@tim_bays: "MoviePass, MovieCrash" on Max. One of the most memorable flameouts in Hollywood history.

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

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June 03, 2024

1 big thing: A penny more