Yet another offer could emerge for Paramount's controlling company, WSJ reports

By Bill Peters

Edgar Bronfman Jr., with the backing of Bain Capital, is reportedly considering an offer up to $2.5 billion to buy National Amusements

As media and entertainment giant Paramount Global lurches toward a possible sale, yet another offer could be in the works - this one from onetime media executive Edgar Bronfman Jr., with the backing of private equity firm Bain Capital.

Bronfman is considering offering $2 billion to $2.5 billion to buy Shari Redstone's National Amusements Inc., the movie-theater operator and holding company that controls Paramount (PARA) (PARAA), the Wall Street Journal reported on Monday.

Bronfman, the former chief executive and chairman of Warner Music Group Corp. (WMG), and Bain would have to vet the company before making any potential offer, a process that could take weeks, according to the Journal.

Meanwhile, Redstone is still in advanced talks to offload most of National Amusements to David Ellison's Skydance Media production company, which would afterward merge with Paramount, the Journal said. The publication said it was unclear whether Redstone would consider other bids as that process continues.

Paramount and Skydance - which have previously collaborated on blockbuster films including "Top Gun: Maverick" and some of the "Mission: Impossible" films - were working with National Amusements through the weekend to address sticking points in the deal, the Journal reported.

Among the issues are how to handle possible lawsuits from Paramount shareholders, some have whom have argued that the deal would benefit Redstone too generously. In its current form, the Skydance deal would allow those shareholders to cash out at a premium to Paramount's current share price, while also providing an infusion of cash to help Paramount deal with its debt, according to the Journal.

Shares of Paramount were down 1.3% on Monday.

The latest developments follow a Journal report last month that Hollywood producer Steven Paul was also preparing a roughly $3 billion offer for National Amusements.

Sony (SONY) (JP:6758) and private-equity firm Apollo Global Management Inc. (APO) reportedly also made an offer for Paramount TK MONTH, as has media executive Byron Allen.

The offers have come as the entertainment industry consolidates and takes a more cautious approach to TV production, as executives search for streaming profits and cope with cord-cutting that has diminished cable TV revenue.

-Bill Peters

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06-10-24 1317ET

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