SNEJF - Paramount Takeover? 3 Bidders Left After Skydance Deal Falls Through

2024-06-13 15:07:12 ET

Summary

• New bidders, including Edgar Bronfman Jr. backed by Bain Capital, have joined the list of potential buyers for NAI to gain control over Paramount Global.
• I, however, believe not all of the bidders are good news for PARA holders.
• Shari Redstone, as the voting majority shareholder, alone gets to decide if Paramount Global is to be sold and, if yes, to whom.
• Legal ramifications may have a real impact on Redstone's decision.

More billionaires and private equity funds have shown interest to buy Paramount Global (PARA) (PARAA) or buy the control of Paramount Global via a purchase of National Amusements (NAI), the family vehicle of the Redstone family. Since my previous article on the possible Paramount Global takeover, focused on the Sony-Apollo deal, quite a number of things have changed. Sony-Apollo have now signed an NDA and they are looking at a different way to structure a potential bid.

Skydance came back last week with another offer that was leaked in bits and pieces and managed to get partial approval from the Paramount side in the leading to headlines like: " Paramount and Skydance agree to terms of a merger deal ". It looked like a deal was completed there, but it was actually the special committee agreeing to put the proposal to the final decision maker, Shari Redstone. This attempt appears to have ended now, though, with the Skydance offer being turned down this week by Redstone....

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