Project Rice Partners Bids $13.5B for Paramount Shares

On Friday, Paramount Global received a new takeover offer worth $13.5 billion from Project Rice Partners (PRP), challenging the $8 billion bid by Skydance Media and RedBird. Capital partners (WA:) According to various reports. The PRP proposal represents a significant increase over the previous bid in the go-shop window and offers a large premium on Paramount’s B shares.

A PRP legal letter drafted by Baker & Hostetler was sent to Paramount’s board and shows the market’s negative reaction to Skydance’s marketing. PRP is now willing to pay $19 for the B shares, a 75% premium and 27% over the $15 offered by Skydance. The price of the A shares under the PRP bid is the same as the Skydance offer. Moreover, PRP plans to inject an additional $2 billion into Paramount’s balance sheet, emphasizing that this is an all-cash proposition backed by committed investors with committed financing.

During the travel shop held in August, representatives of the Special Committee met with more than 50 third parties to gauge interest in acquiring Paramount. This term has ended for all parties as set forth in the marketing agreement with Skydance Media.

The new bid from PRP comes as a major development as Skydance Media and RedBird Capital Partners work to complete the Larry Ellison-backed takeover. The PRP’s revised offer aims to sway Paramount’s board by offering more favorable terms than the deal on the table. The consortium’s latest move adds a new dynamic to acquisition discussions surrounding the popular media conglomerate.

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