Bronfman's Paramount bid could keep Shari Redstone involved, CNBC reports

[August 24, 2024]  (Reuters) -Former U.S. media executive Edgar Bronfman Jr. is open to Shari Redstone remaining involved with Paramount Global if its special committee accepts his consortium's bid for the company's controlling shareholder National Amusements, CNBC reported on Friday.  

Shari Redstone arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, U.S., July 9, 2024. REUTERS/Brendan McDermid/ File Photo

On Wednesday, Bronfman sweetened his bid to take over Paramount, offering $6 billion for National Amusements and a minority stake in the media conglomerate.

The competing offer threatens to undo a planned acquisition by tech scion David Ellison and his independent studio Skydance Media.

Bronfman thanked Paramount Chair Redstone for her "continued support" and "open dialog" in the bid process, which does not describe an ongoing role for her at the company, according to an Aug. 19 letter to the Paramount special committee that was seen by Reuters.

The decision about her continued involvement in Paramount ultimately rests with Redstone, said one person familiar with the matter. Bronfman previously permitted Sidney Sheinberg, the president of the entertainment conglomerate MCA, to keep his office after Bronfman gained control of the company in 1995.

A spokesperson for Redstone could not immediately be reached for comment. Bronfman did not respond to an email seeking comment.

If Paramount, controlled by Redstone's family business, accepts an offer that Skydance does not match, Paramount would have to cough up a $400 million in break-up fee.

Paramount and its special board committee declined a Reuters request for comment, while National Amusements and Bronfman did not immediately respond.

Skydance Media CEO Ellison has also spoken with Redstone about her future with the company, the report added.

Paramount and Skydance Media had signed a merger deal in early July, which included a 45-day "go shop" period, to solicit and consider other deals.

The special board committee had extended the Aug. 21 "go-shop" period deadline until Sept. 5 to evaluate Bronfman's bid, Paramount said this week.

Skydance Media accused Paramount Global's special committee of breaching the terms of its deal by extending the time period when it can engage with other bidders, the Wall Street Journal had reported on Thursday.

(Reporting by Jaspreet Singh in Bengaluru, and Dawn Chmielewski in Los Angeles; Editing by Shilpi Majumdar and Josie Kao)

[© 2024 Thomson Reuters. All rights reserved.]
This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.