Skydance Media Asks Paramount to Stop Negotiating with Edgar Bronfman
Shares of Paramount fell 1.5 percent in extended trading. Photo: Bloomberg
Skydance Media is accusing Paramount Global’s special committee of directors of breaching the terms of the deal by extending the period in which it could negotiate with other bidders, the Wall Street Journal reported Thursday.
This comes after veteran media executive Edgar Bronfman Jr. sweetened his bid for Paramount by offering $6 billion for controlling shareholder National Amusements and a minority stake in Paramount.
Bronfman’s competing bid threatens to undo a planned takeover by tech developer David Ellison and his independent studio Skydance Media.
Shares of Paramount, home to Paramount Pictures, the CBS broadcast network and cable networks such as MTV, fell 1.5 percent in extended trading.
“While Skydance is not currently exercising its right to terminate the Transaction Agreement, we reserve the right to do so in the future,” Skydance’s attorneys said in a letter included in the report.
Paramount’s special governing committee and a spokesman for Bronfman declined to comment. A spokesman for Skydance Media could not immediately be reached.
The special governing committee has extended the Aug. 21 deadline for the Bronfman consortium’s “go-shop” period to Sept. 5, Paramount said Wednesday.
If Paramount, which is controlled by Shari Redstone’s family office, accepts an offer that doesn’t match Skydance, the media conglomerate would have to pay $400 million in a breakup fee.
(Only the headline and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First publication: Aug 23, 2024 | 08:47 AM IST