Paramount Global's independent special committee is expanding its $8 billion merger agreement with Skydance Media after a competing bid from former Warner Music Group CEO Edgar Bronfman Jr., according to The New York Times.
Under the terms of the Skydance agreement, negotiations with a competing bidder may be extended until September 5, if the case or special committee determines “in good faith that it is reasonably expected to result in a higher offer.” If Bronfman Jr. agrees to an agreement that Skydance does not agree to, Paramount will be required to pay David Ellison a $400 million termination tax.
The change comes as The Wall Street Journal reports that Bronfman has increased his offer to $6 billion, up from his previous $4.3 billion bid that was just launched this week. The new offer, the media reports, includes a $1.7 billion public offering that would give Paramount shareholders without a direct vote the option to receive a $16 per year bonus.
Representatives for Bronfman Jr. and Paramount did not immediately respond to TheWrap's request for comment.
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