Paramount Stock Has Down Day As Edgar Bronfman’s Exit Dashes Hopes Of Bidding War
deadline.comShares of Paramount Global are softer today after Edgar Bronfman Jr. exited the Paramount fray last night and shareholders hoping for a bidding war with Skydance were disappointed. “It was a long shot to begin with,” said one investor of Bronfman’s offer. “But you always want a competitive process with the hope that one or both sides will sweeten their bid.
That didn’t happen.” The stock is down 6.4% at $10.60. At the end of the day, time ran out, said a person familiar with situation of the former media executive and heir to the Seagram liquor fortune and the investor consortium he assembled.
The financing depended heavily on high net-worth individuals as private equity and institutional investors were slow to step in.
Layers of documentation to show a reasonable probability of success were required well before Sept. 5, the point where Par could have extended the conversation for another 15 days.
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