For most of the year, Paramount and its parent company, National Amusements, have been trying to couple up with a new buyer. It seemed like Skydance had finally won the bid until a new bombshell dropped in the competition to own Paramount. Edgar Bronfman Jr., chairman of FuboTV, raised his competing bid for National Amusements on August 21. According to The Wall Street Journal, Paramount extended the “go-shop period†by 15 days. However, Bronfman Jr and co. must’ve gotten cold feet, and on August 26, they dropped their bid. You probably have questions. Who is Edgar Bronfman Jr.? What’s a “go-shop period?†Is Skydance winning again? Furthermore, what is a FuboTV? Don’t worry, we have answers including the latest development.
Why did he drop the bid?
There isn’t a specific reason cited but he does mention some “differences†that may have led to the withdrawal. “Tonight, our bidding group informed the special committee that we will be exiting the go-shop process. It was a privilege to have the opportunity to participate,†Bronfman Jr. said on Monday to The Wrap. “We continue to believe that Paramount Global is an extraordinary company, with an unrivaled collection of marquee brands, assets and people. While there may have been differences, we believe that everyone involved in the sale process is united in the belief that Paramount’s best days are ahead. We congratulate the Skydance team and thank the special committee and the Redstone family for their engagement during the go-shop process.â€
So does that mean Skydance won?
Yes, David Ellison and Skydance Media’s bid of $8 billion is seemingly full steam ahead.
Why is Paramount up for sale?
Technically, it’s National Amusements that’s on the auction block. The company most famously headed by Sumner Redstone bought Viacom in 1987 and Paramount in 1993. Shari Redstone took over National Amusements when Sumner died in 2020.
Of course, it’s a lot more complicated than that. The shell game of CBS/Viacom/Gulf+Western/Paramount goes back decades, and was made the more complicated when all these entities re-merged in 2019 as Paramount Global. Read Unscripted by James B. Stewart and Rachel Abrams for the whole sordid story. According to The Hollywood Reporter, the combined worth of Viacom and CBS in 2019 at the time of their merger was $30 billion. By the end of that year, it was just below $10 billion. Shari Redstone is now selling her family’s controlling interest in Paramount Global. Analysts theorize she’s doing so to (1) recoup financially and (2) finally get out from under her father’s shadow.
Wait, didn’t Skydance already win this?
Yep, they technically did win the bid twice. National Amusements did accept David Ellison and Skydance Media’s bid of $8 billion for National Amusements and a merger with Paramount back in July. That kicked off a 45-day “go-shop period,†during which competitors could try to match or outdo Skydance’s offer. Enter Edgar Bronfman Jr. on August 19 with a $4.3 billion offer he’s since upped to $6 billion.
Famously, $6 billion is less than $8 billion. But the Bronfman deal did have some upsides. It wouldn’t require Paramount to merge with another company, and Bronfman argued it has more value to shareholders. Ellison’s deal required Paramount to buy his company in an all-stock transaction, which could lessen shareholder value.
So … who is Edgar Bronfman Jr.?
Would you be shocked to learn he’s the son of Edgar Bronfman Sr.? He’s also the grandson of Samuel Bronfman, former owner of Seagram’s. Seagram’s was, for a time, the world’s largest liquor-distilling firm. It stopped being the largest liquor distilling firm when it merged with Groupe Canal+ and French media firm Vivendi (in an all-stock buyout), something Edgar Bronfman Sr. called “a disaster.â€
Any relation to other famous Bronfmans?
Indeed! Influencer Hannah Bronfman is his daughter. And former NXIVM member Clare Bronfman, who was sentenced to 81 months in prison for her involvement in the cult, is his half-sister.
Which streaming service is FuboTV again?
FuboTV focuses primarily on live sports. On August 17, the company won an injunction against Venu, the joint sports-streaming venture by Fox, Warner Bros. Discovery, and the Walt Disney Company. Lots going on.
What’s next for Paramount?
THR reports that the deal is scheduled to close by next year, with a merged Skydance-Paramount to be valued at $28 billion.