Edgar Bronfman Jr. Makes $4.3 Billion Bid for Paramount Global

The book isn’t closed yet on Paramount Global‘s months-long M&A epic.

On Monday (Aug. 19), billionaire media mogul Edgar Bronfman Jr. submitted an offer valued at $4.3 billion to acquire Shari Redstone’s National Amusements Inc., which is the controlling shareholder of Paramount Global, Variety has confirmed.

Bronfman’s bid is an attempt to rival the offer from David Ellison’s Skydance Media and its financial backers, which last month clinched a binding agreement worth more than $8 billion for NAI and Paramount Global, whose properties include CBS, Paramount Pictures, Showtime/MTV Entertainment Studios and Paramount Media Networks.

Bronfman’s bid was submitted to the special committee established by Paramount Global’s board to evaluate M&A offers, which is expected to review it on Wednesday. Reps for NAI, Bronfman and Skydance declined to comment; representatives for the Paramount board’s special committee did not respond to a request for comment.

Bronfman’s bid for NAI was first reported by the Wall Street Journal.

Bronfman’s offer comprises $2.4 billion for NAI (about $1.75 billion net of debt); an investment of $1.5 billion earmarked for Paramount’s balance sheet to pay down debt; and $400 million for the breakup fee Paramount would be forced to pay to the Skydance group if Paramount opts for Bronfman’s offer.

On July 7, Paramount Global and Skydance Media announced a two-part transaction that would result in Skydance buying out Shari Redstone’s National Amusements Inc. and then merging with Paramount. Under a “go-shop” provision in that agreement, Paramount Global has the right to solicit a better offer in a 45-day window, which expires at 11:59 p.m. ET on Aug. 21.

Currently, Bronfman serves as executive chairman of Fubo, the sports-focused streaming pay-TV provider that last week won a legal victory over Disney, Warner Bros. Discovery and Fox Corp.’s Venu sports streaming joint venture as a federal judge issued a preliminary injunction barring Venu’s launch and siding with Fubo’s antitrust arguments. Bronfman was chairman and CEO of Warner Music Group from 2004-12, stepping down after it was acquired by Len Blavatnik’s Access Industries. Before WMG, he was CEO of Seagram before he sold that business to Vivendi.

With the M&A drama still unresolved, Paramount is undergoing significant layoffs amid revenue declines in its TV and film businesses. The company said it is cutting 15% of its U.S. workforce — eliminating about 2,000 jobs — by the end of 2024 as part of efforts to slash $500 million in yearly costs. The job cuts will be primarily in marketing and communications departments with some “right-sizing” in other areas including legal, finance and other corporate functions, according to Chris McCarthy, head of Showtime/MTV Entertainment Studios and Paramount Media Networks and one of Paramount Global’s three co-CEOs.

Skydance’s cost-cutting targets are even more aggressive. Jeff Shell, the former NBCUniversal CEO who would become president of a combined Skydance-Paramount, has said Skydance is aiming to achieve at least $2 billion in annualized cost synergies at Paramount.