On Friday, Paramount Global received a new $13.5 billion takeover bid from Project Rise Partners (PRP), challenging an existing $8 billion bid from Skydance Media and Redbird Capital Partners (WA :), according to a report from Variety. PRP’s proposal represents a significant increase over their previous offer during the s-shop window and offers a significant premium to Paramount’s B shares.
PRP’s legal letter, drafted by Baker & Hostetler, was sent to the Paramount Board and outlines the unfavorable market response to the Skydance transaction. PRP is now willing to pay $19 per share for the B shares, a 75% premium and 27% higher than the $15 per share offered by Skydance. The price for the shares under the PRP offer remains in line with the Skydance offer. Furthermore, PRP plans to inject an additional $2 billion into Paramount’s balance sheet, emphasizing that this is a comprehensive proposal supported by credible investors with committed financing.
During the s-shop period in August, representatives of the special committee contacted more than 50 third parties to gauge interest in purchasing Paramount. That period, as stipulated in the transaction agreement with Skydance Media, concluded for all parties.
PRP’s new offer comes as a significant development as Skydance Media and Redbird Capital Partners work to complete the Larry Ellison-backed takeover. The improved PRP offer aims to keep Paramount’s board on more favorable terms than the current deal on the table. The consortium’s latest move adds fresh dynamism to the ongoing acquisition discussions surrounding the well-known media conglomerate.
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