Paramount ‘s special committee has considered the competing bid from Edgar Bronfman Jr. to buy National Amusements and take control of Paramount, and it’s at least curious at what it sees. According to the Wall Street Journal , Paramount has extended the “go-shop period” in which other interested bidders could try and match or beat to the deal agreed to with David Ellison’s Skydance .
The committee had the responsibility to consider anything that “is or would reasonably be expected to lead to a superior proposal” compared to what Skydance put on the table. It means the committee is now seriously considering the competing offer and will keep this M&A saga rolling a little longer . After Paramount agreed to a deal with David Ellison’s Skydance, the company opened a 45-day window in which others could match.
Late on Monday, Bronfman formally submitted a $4.3 billion bid, saying that his offer is “far more valuable” than Ellison’s, that it avoids the risks and costs of merging Paramount with Skydance, and it provides a better deal for average shareholders rather than just Shari Redstone . Just before news of the extended period broke, Bronfman sweetened his deal: $6 billion.
It’s still less than the $8 billion Ellison is putting up . But Ellison’s deal requires that Paramount buy his company in an all-stock transaction, which Bronfman argues dilutes the shareholder value, leading some onlookers to criticize it as a sweetheart deal for Redstone. The speci.