Edgar Bronfman’s Paramount bid might hold Shari Redstone concerned

Edgar Bronfman Jr.’s provide for a controlling stake in Paramount International might hold Shari Redstone near the corporate, if his bid is profitable.

Bronfman is open to having Redstone, at present non-executive chairman at Paramount, stay concerned with the corporate if the Paramount particular committee accepts his consortium’s bid for Nationwide Amusements, the controlling shareholder, in accordance with an individual accustomed to the matter.

Bronfman has raised $6 billion to problem Skydance Media for possession of Nationwide Amusements, the holding firm based by Sumner Redstone, in accordance with folks accustomed to the matter. Each Bronfman’s bid and Skydance’s bid would additionally embrace cash to purchase out a proportion of Paramount International widespread shareholders.

At $6 billion, Bronfman’s bid would give money to about 20% of Class B holders at $16 per share. Skydance would pay out about 50% of present Paramount widespread traders at $15 per share as a part of its bid, in accordance with the folks acquainted.

It is not clear if Redstone prefers one provide over the opposite. The Paramount International particular committee will decide if Bronfman’s provide is a superior proposal for shareholders by Aug. 28. If the committee decides Bronfman’s provide is healthier, Skydance will then have 4 enterprise days to match. The deadline for your complete course of to be concluded is Sept. 5.

Bronfman nonetheless has a number of extra days to boost more cash for a competing bid to counter Skydance, which agreed to an $8 billion deal to merge with Paramount International final month. The particular committee earlier this week prolonged the so-called “go-shop” interval — throughout which it might entertain competing provides — by 15 days to evaluate Bronfman’s preliminary bid.

One of many people who’s a part of Bronfman’s bid is former AOL CEO Jon Miller, suggesting Redstone might doubtlessly have extra management over a future Paramount International than she’d get with Skydance. Miller, an in depth ally of Redstone, has been connecting Bronfman with potential capital and would seemingly take a job with the corporate if it got here beneath Bronfman’s stewardship — maybe a board seat and an operational job — in accordance with folks accustomed to the matter. Bronfman can be CEO of the corporate if his deal have been to be accepted and undergo, mentioned the folks.

Miller, Redstone and Redstone’s son-in-law, Jason Ostheimer, collectively run Advancit Capital, a small enterprise capital agency that invests in media and expertise. The trio are the one three those that seem on the agency’s web site. Miller has additionally operated as a de facto strategic advisor to Redstone for a few years, in accordance with folks accustomed to the matter.

Redstone has not spoken with Miller in regards to the bid, in accordance with folks accustomed to the matter.

Whereas the Redstone household and Bronfman household have run in comparable circles, together with donating closely to Jewish foundations, Edgar Bronfman Jr. and Shari Redstone have not met many occasions and haven’t got an in depth preexisting relationship, two of the folks mentioned.

Skydance CEO David Ellison and Redstone have had a number of discussions in regards to the potential for Redstone to remain in as a shareholder of a mixed Skydance-Paramount International, in accordance with folks accustomed to the matter.

Redstone is taking a wait-and-see strategy to any future involvement she could wish to have in Paramount International shifting ahead no matter its possession, in accordance with an individual accustomed to her considering.

Spokespeople for Redstone, Bronfman, the Paramount International particular committee and Skydance all declined to remark.

Bronfman is the chairman of Fubo, a sports activities streaming service, and the previous head of Common and Warner Music.

Skydance’s legal professionals despatched a letter to the Paramount International particular committee demanding the corporate cease negotiating with Bronfman, the Wall Avenue Journal reported Thursday. Skydance mentioned Paramount International breached the phrases of the go-shop settlement by not alerting Skydance that it deliberate to increase the window, the report mentioned.

Skydance additionally argued the particular committee did not have the best to increase the go-shop as a result of a bid needed to “fairly be anticipated to result in a superior proposal.” Skydance argued the Bronfman bid did not meet the factors.

WATCH: Media energy battle: Paramount deal in jeopardy?