A consortium of investors under the banner of Project Rise Partners (PRP) has submitted a last-minute $13.5 billion bid to acquire Paramount Global, challenging an $8 billion deal already inked with billionaire Larry Ellison backed Skydance Media and RedBird Capital Partners.
The revised offer, supported by notable industry figures and financial heavyweights, presents a compelling alternative to the Oracle founder’s-backed takeover, with promises of higher returns for shareholders and a commitment to expanding the media conglomerate.
A letter from PRP sent to Paramount’s board on January 24, outlines the new proposal. Represented by Baker & Hostetler, PRP’s bid offers $19 per Class B share—a 27% increase over Skydance’s $15 per share—and adds $2 billion to Paramount’s balance sheet, Variety first reported.
The terms also include significant governance reforms, granting Class B shareholders voting rights for the first time in the company’s history, and retaining board committees that the Skydance merger planned to eliminate.
PRP’s leadership includes Daphna Edwards Ziman, president of Cinémoi, and Moses Gross, CEO of ANM Group, with financing commitments reportedly backed by industry titans, including a satellite pioneer and one of the world’s wealthiest individuals.
What to know
While the identities of most backers remain undisclosed, there are suggestions that PRP’s roster rivals the influence of Oracle founder Larry Ellison worth $231.4 billion, who is steering the Skydance deal alongside his son, Skydance CEO David Ellison.
- The proposed Skydance-RedBird deal, which values Skydance at approximately $4 billion, has faced scrutiny from shareholders and political figures. Critics argue that the valuation—about 200 times Skydance’s 2023 earnings—lacks justification.
- PRP’s letter cites a need for regulatory scrutiny, particularly given Tencent’s minority stake in Skydance and its ties to the Chinese military. U.S. regulators, including FCC Chair Brendan Carr, have voiced concerns about foreign influence in the deal, raising further questions about its viability.
- Beyond financial considerations, PRP’s bid highlights strategic advantages. The consortium plans to expand Paramount’s workforce, contrasting sharply with anticipated layoffs under Skydance’s leadership. PRP also accuses Paramount’s board of failing its fiduciary duties by prioritizing the Skydance deal over higher-value offers.
- The letter criticizes the board for excluding a fiduciary—a clause that allows boards to accept superior bids post-agreement—in the Skydance deal. This omission, PRP argues, unfairly limits shareholder value while benefitting Skydance.
Paramount and its controlling shareholder, National Amusements Inc., led by Shari Redstone, are legally bound by their agreement with Skydance. Breaking the deal would require regulatory intervention, which some consider unlikely. Still, PRP’s renewed bid places immense pressure on Paramount’s board to reassess its decision-making.
As the battle for Paramount intensifies, shareholders and regulators must weigh PRP’s all-cash offer and governance reforms against the challenges posed by the Skydance merger.
