Former Warner Music CEO Edgar Bronfman Jr. and private investment firm Bain Capital have made a $2 billion offer for Paramount Global, joining a competitive field of potential buyers for the media giant.

Photo Credit: Christopher Peterson / CC by 3.0

National Amusements Inc. (NAI), which controls 77% of Paramount's voting shares, is currently exploring options to sell its majority stake. The company, owned by Shari Redstone, oversees valuable assets including CBS, Paramount movie studios, and networks like Comedy Central, Nickelodeon, and MTV.

Multiple parties have expressed interest in the acquisition:

• Hollywood producer Steven Paul is preparing a $3 billion offer
• Skydance Media, backed by RedBird Capital and KKR, is negotiating a potential merger
• Sony Pictures and Apollo Global Management have shown interest, though Sony recently withdrew

The heightened interest follows S&P Global's March 2024 decision to downgrade Paramount Global's debt rating to junk status. The company carries $14.6 billion in long-term debt as of late 2023, with S&P Global noting that Paramount must "substantially improve streaming losses over the next two years" to avoid further rating downgrades.

Bronfman brings significant media industry experience as the former chairman and CEO of Warner Music Group (2004-2012) and previous CEO of Seagram. He currently serves as executive chairman of Fubo, a sports-focused streaming service.

If Skydance's deal proceeds, they would acquire two-thirds of Paramount's shares for approximately $2 billion, with current Class B shareholders receiving $15 per share. The company would remain publicly traded under this arrangement.

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