Looks like Paramount really does have a second bidder

Media executive Edgar Bronfman Jr. has submitted a bid that throws a wrench into Paramount’s deal with David Ellison’s Skydance Media.

Skydance Media’s honeymoon with Paramount has just been put on pause, for now.

Hours before Paramount’s $8 billion deal with David Ellison’s Skydance would have been cemented, a special committee overseeing Paramount’s acquisition announced in a press release that it’s considering another offer from media mogul Edgar Bronfman Jr., the former CEO of Warner Music Group.

Spokespersons for Bronfman and Skydance did not respond to a request for comment.

Paramount Global and Skydance announced a merger in July, capping months of a tumultuous dealmaking process. In the deal, Shari Redstone’s controlling stake in Paramount would be sold to Ellison’s media venture.

The marriage of the two companies was packaged at the time as the “New Paramount.”

The deal, however, contains a 45-day provision, known as a “go-shop” period, which allowed Paramount to continue seeking other bidders.

In comes Bronfman Jr. who is now the chairman of Fubo, a sports streaming company.

The Wall Street Journal reported on Monday night that the media executive submitted a bid to buy Redstone’s stake for $4.3 billion.

He has since upped his offer to $6 billion, sources familiar with the matter told the outlet on Wednesday.

The Paramount special committee announced on Wednesday evening, hours before the 45-day window would have closed, that the the company is extending the “go-shop” deadline to consider Bronfman Jr.’s offer.

Skydance now has until September 5 to sweeten the deal.

Despite the extension, Bronfman Jr. and his backers still face a potentially fierce bidding war.

Skydance is lined with the support of the Ellison family, which includes billionaire Oracle cofounder Larry Ellison.

According to The New York Times, investors in Bronfman Jr.’s camp include private equity firms like Fortress Investment Group and crypto investor Brock Pierce, who starred in the “Mighty Ducks”
franchise as a child actor.