Seagram heir Edgar Bronfman Jr. is preparing to make an offer for Paramount Global PARA-Q and its controlling shareholder National Amusements, Bloomberg News and Wall Street Journal reported on Thursday, citing sources.
An offer from Bronfman would add another twist to a messy merger saga, which now stands at Paramount having accepted a deal last month from media executive David Ellison’s Skydance Media.
Shares in Paramount, one of Hollywood’s oldest studios, jumped 7 per cent on Thursday.
Bronfman, formerly Warner Music’s chairman, has held discussions with people to back his bid, the Journal said, including Fortress Investment Group, streaming-device maker Roku and Hollywood producer Steven Paul.
Bronfman had expressed interest in buying National Amusements in June and was looking to offer between $2-billion and $2.5-billion. He didn’t bid.
The details of any fresh deal are still being worked out and Bronfman will frame his offer as less dilutive for Paramount’s shareholders, both publications said on Thursday.
As part of Skydance’s offer, Ellison, who founded Skydance, would become chairman and CEO of the new Paramount, after the go-shop period ends on Aug 21. If Paramount receives another offer, which Skydance does not match, Paramount would pay a $400-million breakup fee.
The Paramount-Skydance deal came together after months of talks that appeared to have derailed when National Amusements owner Shari Redstone abruptly called off negotiations amid disagreements over issues such as how to indemnify the controlling shareholder over potential shareholder lawsuits.
Last week, Paramount wrote down the value of its cable networks by nearly $6-billion and announced it would cut 15 per cent of its U.S. work force, as it navigates the decline of the cable television business.
Representatives for Bronfman, National Amusements and Paramount did not immediately respond to Reuters’ requests for comment.