Paramount said it's considering a competing acquisition bid led by Seagram heir and media executive Edgar Bronfman Jr., and will extend a so-called go-shop period with merger partner Skydance Media.
Paramount, the owner of Paramount Pictures movie studio, the CBS television network and CBS News, had included the 45-day go-shop period, a window when it would consider competing offers, when it agreed to merge with movie studio Skydance last month.
On Wednesday, Paramount's special committee of the board of directors said it would extend the go-shop period by an additional 15 days to consider Bronfman's offer.
While the statement didn't disclose details about the new bid, the Wall Street Journal reported that Bronfman is offering $6 billion to buy National Amusements, which controls 77% of the voting shares of Paramount, and a minority stake in Paramount. The bid also includes an offer of $16 a share to non-voting Paramount shareholders, representing a 44% premium to Wednesday's closing price.
Bronfman did not immediately reply to a request for comment from CBS MoneyWatch.
By comparison, the Skydance deal offers $15 a share for non-voting investors, or one share of non-voting stock in the new company. Skydance offered to pay $2.4 billion for National Amusements.
"There can be no assurance this process will result in a superior proposal," Paramount's special committee said in the Wednesday statement. "The company does not intend to disclose further developments unless and until it determines such disclosure is appropriate or is otherwise required."
Skydance, an entertainment business founded in 2010 by David Ellison, son of Oracle founder Larry Ellison, has produced or co-produced hit films and TV shows including "Top Gun: Maverick" and the "Reacher" streaming series.
Bronfman, the former CEO of Warner Music Group, is the current chair of streaming service FuboTV.
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