What appeared to be an exciting race for Paramount changed its course altogether as former Warner Music Group CEO Edgar Bronfman Jr. entered a $4.3 billion emerging bid to take over the media house. This, just a few days ahead of the key date in the negotiation process, is really bringing up the mud to an already brewing deal with Skydance, according to a report by The New York Times.&nbsp;

This is a company that owns CBS, MTV, and one of the most storied movie studios in the business, which happens to be in the process of being acquired. Skydance, run by David Ellison, cut a deal in July to buy Shari Redstone's controlling shares at a price that would recapitalize the company at around $8 billion. The deal has what's called a 45-day "go-shop" provision, which means Paramount can literally shop for a better offer.&nbsp;

With a Bronfman bid would come attached producer Steven Paul, behind the "Baby Geniuses" franchise. The offer would give access to the parent corporation behind Paramount, National Amusements. Paramount, at one time a titan in TV and film, has struggled lately as the world shifts away from traditional cable TV and toward streaming services, like its own Paramount+ and Pluto TV. The company has also posted a recent profit from its streaming operations and just this week announced plans to cut 15 per cent of its workforce in the U.S. This development clearly signifies at large the decisive transition of digital viewing from cable TV towards streaming of content, i.e., streaming services. It also provides a clue for aspiring digital media players.&nbsp;

Further, the upshot of the "go-shop" window closing Wednesday should help clarify the fate of Bronfman's bid. If Paramount had otherwise decided to extend the period for negotiation, that would have meant it was taking Bronfman's offer seriously.&nbsp;

The Skydance deal is structured as a merging of Skydance with Paramount as a subsidiary, but some shareholders feel that the deal undervalues Paramount. This is a serious issue in the ongoing negotiations. It is seen that Skydance has an inflated valuation of $4.75 billion and that Ellison is overpaying for the company.&nbsp;

But Bronfman has also lined up in front of him the formidable obstacle of Ellison, who, despite deep support from his investors, offers a governance premium to allow Redstone to continue supporting him. Unless it finally nails its agreement with Skydance, Paramount will be charged a $400 million breakup fee.&nbsp;

And for all his previous association with Redstone and firsthand experience in running large organizations, though, Bronfman had leverage on his side, Paramount is sensitive to such proposals because it will have to accommodate the demands of investors before laying a claim for future longterm stability.

What appeared to be an exciting race for Paramount changed its course altogether as former Warner Music Group CEO Edgar Bronfman Jr. entered a $4.3 billion emerging bid to take over the media house.

What appeared to be an exciting race for Paramount changed its course altogether as former Warner Music Group CEO Edgar Bronfman Jr. entered a $4.3 billion emerging bid to take over the media house. This, just a few days ahead of the key date in the negotiation process, is really bringing up the mud to an already brewing deal with Skydance, according to a report by The New York Times. This is a company that owns CBS, MTV, and one of the most storied movie studios in the business, which happens to be in the process of being acquired. Skydance, run by David Ellison, cut a deal in July to buy Shari Redstone's controlling shares at a price that would recapitalize the company at around $8 billion. The deal has what's called a 45-day "go-shop" provision, which means Paramount can literally shop for a better offer. With a Bronfman bid would come attached producer Steven Paul, behind the "Baby Geniuses" franchise. The offer would give access to the parent corporation behind Paramount, National Amusements. Paramount, at one time a titan in TV and film, has struggled lately as the world shifts away from traditional cable TV and toward streaming services, like its own Paramount+ and Pluto TV. The company has also posted a recent profit from its streaming operations and just this week announced plans to cut 15 per cent of its workforce in the U.S. This development clearly signifies at large the decisive transition of digital viewing from cable TV towards streaming of content, i.e., streaming services. It also provides a clue for aspiring digital media players. Further, the upshot of the "go-shop" window closing Wednesday should help clarify the fate of Bronfman's bid. If Paramount had otherwise decided to extend the period for negotiation, that would have meant it was taking Bronfman's offer seriously. The Skydance deal is structured as a merging of Skydance with Paramount as a subsidiary, but some shareholders feel that the deal undervalues Paramount. This is a serious issue in the ongoing negotiations. It is seen that Skydance has an inflated valuation of $4.75 billion and that Ellison is overpaying for the company. But Bronfman has also lined up in front of him the formidable obstacle of Ellison, who, despite deep support from his investors, offers a governance premium to allow Redstone to continue supporting him. Unless it finally nails its agreement with Skydance, Paramount will be charged a $400 million breakup fee. And for all his previous association with Redstone and firsthand experience in running large organizations, though, Bronfman had leverage on his side, Paramount is sensitive to such proposals because it will have to accommodate the demands of investors before laying a claim for future longterm stability.

Edgar Bronfman Jr. Challenges Skydance Bid for Paramount

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Edgar Bronfman Jr. Challenges Skydance Bid for Paramount