PARAMOUNT GLOBAL'S SPECIAL COMMITTEE ANNOUNCES END OF "GO-SHOP" PROCESS
Paramount Global's Special Committee announced the end of the 'Go-Shop' process as Edgar Bronfman Jr.'s consortium withdrew their acquisition proposal. The committee contacted over 50 third parties during this period to explore potential acquisition offers. Charles E. Phillips, Jr., Chair of the Special Committee, reaffirmed their belief that the agreed transaction with Skydance Media offers immediate value and potential for continued growth in a rapidly evolving industry.
The Skydance transaction is expected to close in the first half of 2025, subject to regulatory approvals and other conditions. Paramount will file a registration statement on Form S-4 with the SEC, including an information statement/prospectus, regarding the proposed transactions involving Paramount, Skydance, and NAI.
Il Comitato Speciale di Paramount Global ha annunciato la conclusione del processo 'Go-Shop' dopo che il consorzio di Edgar Bronfman Jr. ha ritirato la propria proposta di acquisizione. Durante questo periodo, il comitato ha contattato oltre 50 soggetti terzi per esplorare potenziali offerte di acquisizione. Charles E. Phillips, Jr., Presidente del Comitato Speciale, ha ribadito la propria convinzione che la transazione concordata con Skydance Media offre un valore immediato e potenziale di crescita continua in un settore in rapida evoluzione.
Si prevede che la transazione con Skydance si chiuda nella prima metà del 2025, soggetta ad approvazioni normative e altre condizioni. Paramount presenterà una dichiarazione di registrazione sul modulo S-4 alla SEC, inclusi un'informativa/prospetto, riguardo le transazioni proposte che coinvolgono Paramount, Skydance e NAI.
El Comité Especial de Paramount Global anunció el final del proceso 'Go-Shop' después de que el consorcio de Edgar Bronfman Jr. retirara su propuesta de adquisición. Durante este período, el comité contactó a más de 50 partes externas para explorar posibles ofertas de adquisición. Charles E. Phillips, Jr., Presidente del Comité Especial, reafirmó su creencia de que la transacción acordada con Skydance Media ofrece un valor inmediato y potencial para un crecimiento continuo en una industria en rápida evolución.
Se espera que la transacción con Skydance se cierre en la primera mitad de 2025, sujeta a aprobaciones regulatorias y otras condiciones. Paramount presentará una declaración de registro en el formulario S-4 ante la SEC, que incluirá una declaración informativa/prospecto, sobre las transacciones propuestas que involucren a Paramount, Skydance y NAI.
파라마운트 글로벌의 특별 위원회는 에드가 브론프먼 주니어의 컨소시엄이 인수 제안을 철회함에 따라 '고샵' 프로세스의 종료를 발표했습니다. 이 기간 동안 위원회는 50개 이상의 제3자와 연락하여 잠재적 인수 제안을 탐색했습니다. Charles E. Phillips, Jr. 특별 위원회의 의장은 스카이댄스 미디어와의 합의된 거래가 빠르게 변화하는 산업에서 즉각적인 가치와 지속적인 성장의 잠재력을 제공한다고 다시 한번 확신했습니다.
스카이댄스 거래는 2025년 상반기에 종료될 것으로 예상되며, 규제 승인 및 기타 조건이 적용됩니다. 파라마운트는 SEC에 대해 인수 제안과 관련된 정보 성명서/투자 설명서를 포함한 S-4 양식 등록 성명을 제출할 것입니다.
Le Comité Spécial de Paramount Global a annoncé la fin du processus 'Go-Shop' après le retrait de la proposition d'acquisition du consortium dirigé par Edgar Bronfman Jr. Pendant cette période, le comité a contacté plus de 50 tiers pour explorer des offres d'acquisition potentielles. Charles E. Phillips, Jr., Président du Comité Spécial, a réaffirmé sa conviction que la transaction convenue avec Skydance Media offre une valeur immédiate et un potentiel de croissance continue dans une industrie en évolution rapide.
La transaction avec Skydance devrait être finalisée dans la première moitié de 2025, sous réserve des approbations réglementaires et d'autres conditions. Paramount déposera une déclaration d'enregistrement sur le formulaire S-4 auprès de la SEC, y compris une déclaration d'information/prospectus concernant les transactions proposées impliquant Paramount, Skydance et NAI.
Das Sonderkomitee von Paramount Global gab das Ende des 'Go-Shop'-Verfahrens bekannt, nachdem das Konsortium von Edgar Bronfman Jr. sein Übernahmeangebot zurückgezogen hatte. In diesem Zeitraum kontaktierte das Komitee über 50 Dritte, um potenzielle Übernahmeangebote zu prüfen. Charles E. Phillips, Jr., Vorsitzender des Sonderkomitees, bestätigte erneut seine Überzeugung, dass die vereinbarte Transaktion mit Skydance Media sofortigen Wert und Potenzial für kontinuierliches Wachstum in einer sich schnell entwickelnden Branche bietet.
Die Transaktion mit Skydance wird voraussichtlich in der ersten Hälfte von 2025 abgeschlossen, vorbehaltlich regulatorischer Genehmigungen und anderer Bedingungen. Paramount wird eine Registrierungsmitteilung in Form S-4 bei der SEC einreichen, einschließlich einer Informationsmitteilung/Prospekt über die vorgeschlagenen Transaktionen, die Paramount, Skydance und NAI betreffen.
- Skydance Media transaction expected to provide immediate value and potential for future growth
- Thorough exploration of acquisition opportunities over nearly eight months
- Transaction expected to close in the first half of 2025
- Withdrawal of acquisition proposal from Bronfman Consortium
- No alternative offers emerged during the 'Go-Shop' process
The conclusion of Paramount's "go-shop" process marks a significant milestone in the company's strategic direction. With the Bronfman Consortium withdrawing their proposal and no other actionable opportunities emerging, Paramount is now firmly set on the Skydance transaction. This decision, made after an extensive 8-month exploration, suggests that the board sees this as the best path forward in a rapidly evolving industry landscape.
The Special Committee's extensive outreach to over 50 third parties demonstrates a thorough due diligence process, likely aimed at maximizing shareholder value. However, the lack of alternative bids may indicate that potential acquirers view Paramount's valuation or industry challenges as significant hurdles. The commitment to the Skydance deal, expected to close in H1 2025, signals a long-term strategic play, potentially reshaping Paramount's position in the competitive media landscape.
The withdrawal of the Bronfman Consortium's proposal and the conclusion of the go-shop process without additional bidders is a double-edged sword for Paramount shareholders. On one hand, it confirms the Skydance deal as the best available option, providing immediate value and potential for future growth. On the other, the lack of competing bids might raise questions about the company's perceived value in the market.
Investors should note that the transaction's expected closure in H1 2025 indicates a lengthy regulatory review process, which could introduce uncertainty. The involvement of Centerview Partners and Cravath, Swaine & Moore suggests a robust deal structure, but shareholders should closely monitor the upcoming S-4 filing for detailed transaction terms and potential risks. The emphasis on "immediate value" and "continued participation in value creation" hints at a deal structure that might include both cash and stock components, allowing current shareholders to benefit from potential future upside.
During the go-shop period, representatives of the Special Committee contacted more than 50 third parties to determine whether they had an interest in making a proposal to acquire Paramount.
"On behalf of the Special Committee we thank Mr. Bronfman and his investor group for their interest and efforts," said Charles E. Phillips, Jr., Chair of the Special Committee.
"Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our Special Committee continues to believe that the transaction we have agreed with Skydance delivers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape," he added.
The Skydance transaction is expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions.
Centerview Partners LLC serves as financial advisor to the Paramount Special Committee and Cravath, Swaine & Moore LLP serves as legal counsel.
Important Information About the Transactions and Where To Find It
In connection with the proposed transactions involving Paramount, Skydance and NAI (the "Transactions"), Paramount will file with the Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 that will include an information statement on Schedule 14C and that will also constitute a prospectus of Paramount. Paramount may also file other documents with the SEC regarding the Transactions.
This document is not a substitute for the information statement/prospectus or registration statement or any other document that Paramount may file with the SEC. INVESTORS AND SECURITY HOLDERS OF PARAMOUNT ARE URGED TO READ THE REGISTRATION STATEMENT, WHICH WILL INCLUDE THE INFORMATION STATEMENT/PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTIONS AND RELATED MATTERS. Investors and security holders may obtain free copies of the registration statement on Form S-4 (when available), which will include the information statement/prospectus, and other documents filed with the SEC by Paramount through the website maintained by the SEC at www.sec.gov or by contacting the investor relations department of Paramount (+1-646-824-5450; jaime.morris@paramount.com).
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell, any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Cautionary Notes on Forward-Looking Statements
This communication contains both historical and forward-looking statements, including statements related to our future results, performance and achievements. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements reflect our current expectations concerning future results and events; generally can be identified by the use of statements that include phrases such as "believe," "expect," "anticipate," "intend," "plan," "foresee," "likely," "will," "may," "could," "estimate" or other similar words or phrases; and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements.
Important risk factors that may cause such a difference include, but are not limited to: (i) that the Transactions may not be completed on anticipated terms and timing (or at all), (ii) that a condition to closing of the Transactions may not be satisfied, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals), (iii) that the anticipated tax treatment of the Transactions may not be obtained, (iv) the potential impact of unforeseen liabilities, future capital expenditures, revenues, costs, expenses, earnings, synergies, economic performance, indebtedness, financial condition and losses on the future prospects, business and management strategies for the management, expansion and growth of the combined business after the consummation of the Transactions, (v) potential litigation relating to the Transactions that could be instituted against Paramount or its directors, (vi) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transactions, including the effect of the Transactions on the Company's employees, commercial partners, clients and customers, and contractual restrictions while the Transactions are pending, (vii) any negative effects of the announcement, pendency or consummation of the Transactions on the market price of Paramount's common stock and on Paramount's or Skydance's operating results, (viii) risks associated with third party contracts containing consent and/or other provisions that may be triggered by the Transactions, (ix) the risks and costs associated with the integration of, and the ability of Paramount and Skydance to integrate, the businesses successfully and to achieve anticipated synergies, (x) the risk that disruptions from the Transactions will harm Paramount's business, including current plans and operations or by diverting management's attention Paramount's ongoing business operations, (xi) the ability of Paramount to retain and hire key personnel and uncertainties arising from leadership changes, (xii) legislative, regulatory and economic developments, (xiii) the other risks described in Paramount's most recent annual report on Form 10-K and quarterly report on Form 10-Q, and (xiv) management's response to any of the aforementioned factors. There may be additional risks, uncertainties and factors that we do not currently view as material or that are not necessarily known.
These risks, as well as other risks associated with the Transactions, will be more fully discussed in the information statement/prospectus that will be included in the registration statement on Form S-4 that will be filed with the SEC in connection with the Transactions. While the list of factors presented here is, and the list of factors to be presented in the registration statement on Form S-4 is, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Paramount's consolidated financial condition, results of operations, credit rating or liquidity. The forward-looking statements included in this communication are made only as of the date of this communication, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by applicable law.
Contact:
Brunswick Group
ParamountSpecialCommittee@brunswickgroup.com
(212) 333 – 3810
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SOURCE The Special Committee of the Board of Directors of Paramount Global
FAQ
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