Paramount likely to extend ‘go shop’ period if Bronfman bids

PARAMOUNT Global, which has agreed to merge with David Ellison’s Skydance Media, is likely to extend a deadline for rival takeover bids if Edgar Bronfman Jr makes an offer for the company before Wednesday (Aug 21) night, sources with knowledge of the matter said.

Bronfman, a longtime media investor, is expected to make an offer for Paramount, the parent of CBS and MTV, in the next 24 hours, according to one of the sources, who was not authorised to speak publicly and asked not to be identified.

Paramount agreed to combine with Skydance last month. The terms included a 45-day “go shop” period in which Paramount could solicit and consider other offers. That expires on Aug 21 at 11.59 pm New York time, according to their agreement. The company may extend the deadline to Sep 5 if it receives a potentially superior offer.

Paramount shares were up less than 1 per cent to US$11.07 at the close in New York.

Bronfman, an heir to the Seagram fortune, has been poring over financial data that Paramount provided potential bidders and has held talks with a wide range of potential investors.

They include Bain Capital, which has dropped out. Roku, which held preliminary discussions about participating in an offer for Paramount, has not committed, according to a source familiar with the situation. BLOOMBERG