Paramount Extends Deadline for Edgar Bronfman Jr.’s Takeover Bid

On Wednesday, Paramount Pictures made a significant decision to extend its evaluation period for a takeover offer presented by media executive Edgar Bronfman Jr. This move indicates that the company is giving serious consideration to the proposal, as reported by two sources familiar with the matter.

The late-breaking bid has the potential to disrupt an existing agreement for Paramount’s acquisition by Skydance, a rapidly growing Hollywood studio. This $8 billion deal with Skydance was finalized after extensive negotiations and comes with the backing of Larry Ellison, the founder of Oracle, whose son, David, manages Skydance. Both Mr. Bronfman and representatives from Skydance have refrained from commenting on the situation.

With the new deadline set for early September, Mr. Bronfman and his consortium now have the opportunity to persuade a special committee within Paramount’s board of directors that their offer surpasses Skydance’s. Additionally, Skydance retains the option to enhance its bid to outmaneuver rival offers, potentially extending the negotiation period further.

Mr. Bronfman has gathered a coalition of investors, which includes prominent private equity firms such as Fortress Investment Group, along with a notable figure from the cryptocurrency world, who gained fame from a film in the “Mighty Ducks” franchise. Collectively, this group has proposed an investment of $6 billion for a controlling interest in National Amusements, the parent company of Paramount, as well as a minority stake in the larger media conglomerate.

Earlier on Wednesday, The Wall Street Journal reported new information regarding Mr. Bronfman’s offer. Interestingly, the bidding consortium also has connections to individuals linked with Shari Redstone, the pivotal controlling shareholder of Paramount. Notably, Jonathan Miller, who previously collaborated with Ms. Redstone at an investment firm, is serving as an adviser to the bid, according to anonymous sources familiar with the negotiations.

In recent days, Mr. Bronfman and his backers have been working diligently to convince Paramount to take their bid seriously. They managed to secure additional financing commitments just within the last day and engaged in discussions with Paramount on Tuesday to outline their vision for the company’s future.