The tangled future of Paramount has taken another twist with the emergence of a new $4.3 billion bid from Edgar Bronfman Jr. and other investors, according to published reports. 

In early July, Paramount Global had agreed to merge with Skydance Media to form “New Paramount” in an $8 billion deal that included all of Paramounts media assets as well as the acquisition of National Amusements, Inc. which holds the controlling share stake in Paramount.

The agreement emerged after nearly six months of on again, off again talks with Skydance and other possible bidders. 

Under the terms of the July deal, there was a 45 day window for new offers to emerge. The Skydance deal had been criticized by other shareholders as favoring Shari Redstone, the controlling shareholder of National Amusements. 

The Wall Street Journal, which first reported the offer noted that “In a letter to Charles Phillips, chair of Paramount’s special committee of directors, Bronfman wrote that his investor group believes that Paramount’s business is `far more valuable’ than what Skydance is paying."

The Wall Street Journal also reported that Bronfman is offering to buy “National Amusements in an equity deal valued at $1.75 billion, equal to what Skydance has offered for Redstone’s company, plus investing $1.5 billion onto Paramount’s balance sheet, also similar to what Skydance has offered, the people said. Including debt, Bronfman’s offer for National Amusements is $2.4 billion.”

Bronfman previously ran Warner Music, Seagram and Vivendi Universal. His offer will pit him against David Ellison’s Skydance. Ellison is the son of Larry Ellison who cofounded Oracle and is one of the world’s richest men with a net worth of around $170 billion. In his letter to Paramount, Bronfman said he had lined up $5 billion worth of financing for the deal.  

Paramount Global's stock rose early on Weds., July 3 after new reports indicated that David Ellison’s Skydance Media had sweetened its offer for Paramount Global’s holding company National Amusement and that the two parties had a preliminary agreement.   

Under the new offer, the Wall Street Journal is reporting that Skydance would pay $1.75 billion for National Amusements. If the sale is completed, Skydance would then merge with Paramount. 

National Amusements, which is owned by the Redstone family and run by Shari Redstone, owns 77% of the voting stock of Paramount.  

The drama over Paramount’s potential sale has been going on for several months. Chances of an agreement rose in April, when Skydance entered into an exclusive window to negotiate with Paramount, and then fell when they were unable to agree on terms in May. 

In early June, CNBC and the Wall Street Journal both reported that the talks were revived and a Skydance/Paramount deal was expected within days.  But talks suddenly collapsed on June 11. 

Shares in Paramount were up about 7% at 11:38 a.m. ET on the renewed chances of a deal.

The on-again, off-again, negotiations over a merger between Skydance Media and Paramount Global have collapsed, with the Wall Street Journal publishing a statement from National Amusements confirming that the talks have ended. 

National Amusements, which is owned by the Redstone family and run by Shari Redstone, owns 77% of the voting stock of Paramount.    

In a statement National Amusements said “that they have not been able to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI.”

Talks between David Ellison’s Skydance Media and the Shari Redstone have been going on for several months. Chances of an agreement rose in April, when Skydance entered into an exclusive window to negotiate with Paramount, and then fell when they were unable to agree on terms in May. Last week, however, the two parties seemed close to a deal, with CNBC and the Wall Street Journal both reporting that a deal was expected this week. 

The Wall Street Journal is now reporting that Shari Redstone “will now likely pursue a sale of just National Amusements, without trying to merge Paramount into another company, people familiar with the matter said. NAI has received interest from two potential parties—an investor consortium led by Hollywood producer Steven Paul, as well as from media executive Edgar Bronfman Jr., backed by private-equity firm Bain Capital, the Journal earlier reported.”  

The New York Times reported that one hitch in completing the deal was whether Skydance would indemnify Redstone from shareholder lawsuits. Another stumbling block was the growing lack of trust between the two parties.

Other potential bidders for Paramount include Sony, Byron Allen,  Warner Bros. Discovery, and others. 

NEW YORK—The lengthy negotiations for Skydance to merge with Paramount are moving closer to completion, with several outlets reporting that Paramount and Skydance, which is backed by private equity firm RedBird Capital, have agreed to terms of a deal. 

CNBC is reporting that the deal is valued at $8 billion, up from $5 billion earlier on the table, and that it currently calls for the controlling shareholder Shari Redstone to receive $2 billion for National Amusements. Skydance would also "buy out nearly 50% of class B Paramount shares at $15 apiece, or $4.5 billion, leaving the holders with equity in the new company. Skydance and RedBird would also contribute $1.5 billion in cash to Paramount’s balance sheet to help reduce debt,” CNBC reported. 

When the deal closes, David Ellison’s Skydance and RedBird would own two-thirds of Paramount, and the class B shareholders would own the remaining third of the company, the Wall Street Journal and CNBC reported. 

The potential agreement comes after months of discussions about selling Paramount. Skydance had an exclusive window to complete the deal earlier this year and when the parties were unable to come to terms, Sony and Apollo Global Management submitted a proposal to acquire the company.  

Bob Bakish, chief executive of Paramount stepped down on Monday, effective immediately. Bakish, who was a staunch ally of Shari Redstone, controlling shareholder of Paramount, was pushed out over—among other things—his perceived tepid support for a proposed merger with Skydance, which Redstone has approved, but is awaiting board approval.

Despite recently sweetening its offer with a $3 billion cash infusion to pay down debt, not all shareholders are on board with Skydance. In addition, Sony and Apollo Global Management have recently emerged as alternative suitors. 

The announcement, which was not unexpected, was made on Monday, with the company being run by three executives Brian Robbins, head of the Paramount movie studio; George Cheeks, chief executive of Paramount’s CBS division; and Chris McCarthy, chief executive of Showtime and MTV Entertainment Studios.

In addition to its film division, Paramount's media properties including BET, CBS (including CBS Television Studios and CBS Television Distribution), Comedy Central, MTV, Nickelodeon and Showtime. The company, which has struggled to adapt to declining pay-TV revenues and increased competition from the streaming market, has been a takeover target for years. Redstone has reportedly been disappointed in Bakish’s stewardship of the company, particularly after it passed on a $5.5 billion deal from Blackstone to acquire its Showtime cable network in 2021. 

Bakish—who had been with Paramount since 1997 and took over as CEO when it was Viacom in 2016—is expected to leave the company with a severance package of $50.6 million, according to the New York Times.

NEW YORK—After multiple reports that a merger was on the horizon, CBS and Viacom have officially announced a finalized agreement that will combine the two companies once again after initially splitting in 2006. The combined company will go by ViacomCBS Inc.

As previously reported, Bob Bakish, president and CEO of Viacom, will serve in the same position for the combined company. CBS’ president and acting CEO Joe Ianniello will now have the title of chairman and CEO of CBS, where his responsibility will be to oversee all CBS-branded assets. Other leadership positions will be occupied by Christina Spade as executive vice president and chief financial officer, and Christa D’Alimonte as EVP, general counsel and secretary. Shari Redstone, who served as vice chair for both companies, will now be the chair of ViacomCBS Inc.

“Today marks an important day for CBS and Viacom, as we unite our complementary assets and capabilities and become one of only a few companies with the breadth and depth of content and reach to shape the future of our industry,” said Bakish in the company’s official press release.

“My father [Summer Redstone] once said ‘content is king,’ and never has that been more true than today,” said Redstone. “Through CBS and Viacom’s shared passion for premium content and innovation, we will establish a world-class, multiplatform media organization that is well-positioned for growth in a rapidly transforming industry.”

ViacomCBS Inc. now houses CBS, CBS Sports, CBS News, Showtime, Comedy Central, BET, MTV, the Paramount Network, Ten Australia, Nickelodeon, CBS All Access, 5, Pop, PlutoTV, the CW and Paramount Studios. According to the company’s release, ViacomCBS has a 22% share of the U.S. TV audience; production capabilities across five continents; a library of more than 140,000 premium TV episodes and 3,600 films; and a global reach of more than 4.3 billion cumulative TV subscribers across more than 180 countries.

Moving forward, the company has devised a three-part growth strategy that includes accelerating its direct-to-consumer strategy; enhancing distribution and advertising opportunities; and to create a leading producer and licensor of premium content to third-party platforms globally.

The merger is subject to regulatory approvals and other customary closing conditions, but the company expects the transaction to close by the end of 2019. It also forecasts that the merger will offer $500 million in cost savings within the first two years of closing.