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

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

Photo Credit: Christopher Peterson / CC by 3.0

Multiple buyers have emerged, including Hollywood producer Steven Paul, who is preparing a $3 billion offer. Simultaneously, Shari Redstone is in negotiations with Skydance Media and its financial partners RedBird Capital and KKR for a potential merger that would give Skydance two-thirds ownership while keeping Paramount public.

The heightened interest in Paramount comes after S&P Global downgraded the company's debt rating to junk status in March 2024, citing concerns about free cash flow relative to its $14.6 billion long-term debt. The rating agency emphasized that Paramount must significantly improve its streaming losses over the next two years to avoid further downgrades.

Bronfman brings significant media industry experience to the bid, having served as Warner Music Group's chairman and CEO from 2004 to 2012. He currently serves as the executive chairman of Fubo, a sports-focused streaming service, and previously led Seagram before its sale to Vivendi in 2000.

The outcome of these competing bids will likely reshape the media landscape, as Paramount's extensive portfolio of entertainment assets makes it a valuable acquisition target despite its current financial challenges.

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