American billionaire and former Warner Music Group CEO Edgar Bronfman Jr. has decided to buy Paramount Global, valuing it at $4.3 billion, several sources told Bloomberg. The businessman has already sent an official proposal to the company.
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According to the agency’s sources, Bronfman Jr.’s move is intended to thwart the already agreed deal to merge Paramount with the media holding company Skydance Media. The deal, which was preceded by six months of negotiations, was announced in July.
Bronfman Jr.’s offer represents $1.75 billion for Paramount’s parent company, National Amusements Inc. He intends to invest another $1.5 billion in developing Paramount.
Under the Paramount-Skydance Media merger plan, the investment fund RedBird Capital Partners, the Ellison family and Oracle founder Larry Ellison will pay $2.4 billion in the first stage.
They will then pay another $4.5 billion in cash and stock for the Paramount Global shares.
Another $1.5 billion will then be invested to strengthen Paramount’s balance sheet and pay off the media company’s debts, which exceed $14 billion.
The deal is expected to close in 2025 and will create a new company, New Paramount, with a valuation of $28 billion.
The agreement also stipulates that Paramount will be able to consider other purchase offers within 45 days. With the deadline set for Wednesday, Edgar Bronfman Jr. has formally declared his interest in the asset.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
