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Abu Dhabi-backed financier among bidders for Hollywood giant

By Shane McGinley
Paramount The Godfather An offer they can't refuse? Among the best-known films from Paramount Pictures, currently the subject of two takeover bids, is The Godfather, from 1972 Alamy/Pictorial Press
An offer they can't refuse? Among the best-known films from Paramount Pictures, currently the subject of two takeover bids, is The Godfather, from 1972
  • $4.3bn offer for Paramount
  • Conglomerate led by Bronfman Jr
  • Mubadala owns stake in bid partner

A New York investment company backed by Abu Dhabi is part of a group that has launched a bid to take over Paramount Global, one of Hollywood’s biggest entertainment companies.

The conglomerate, led by the industry veteran Edgar Bronfman Jr, a former CEO of Warner Music Group, submitted a $4.3 billion bid on Monday to buy National Amusements, the company with a controlling stake in Paramount Global, sources told Reuters.

Paramount Global is one of the biggest entertainment players in the US, with brands such as Paramount Pictures, the Hollywood studio behind classic films such as Titanic, Grease, Mission: Impossible, Star Trek, Top Gun, Terminator and The Godfather. 

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It also includes television networks such as CBS, MTV, Nickelodeon and Comedy Central, and stakes in the UK’s Channel 5 and Australia’s Network 10.

Bronfman’s investor group includes Fortress Investment Group, a New York-based investment management company in which Mubadala Capital is a major equity holder. 

However, a source told Reuters that Fortress operates as an independent entity, and its investment decisions are not influenced by the Abu Dhabi wealth fund.

Bronfman’s bid for control of Paramount comes after a bid for the group by film producer David Ellison, the CEO of Skydance Media, and the son of Oracle multibillionaire Larry Ellison.

Reuters reported that the Ellison-led offer contained a 45-day “go-shop period” that allowed Paramount executives to court other potential bidders. That period ends on August 21 but may be extended. 

Should Paramount go with a bid other than that led by Ellison, it has to pay a breakup fee of $400 million. However, a source told Reuters that the Bronfman-led group has offered to cover this cost as part of its rival bid.

Body Part, Finger, Hand FILE PHOTO: Edgar Bronfman Jr., Chairman, Endeavor Global, speaks during the Milken Institute's 22nd annual Global Conference in Beverly Hills, California, U.S., April 30, 2019. REUTERS/Mike Blake/File PhotoMike Blake/Reuters
Edgar Bronfman Jr submitted a $4.3 billion bid on Monday

Spokespeople for Paramount, Skydance and Bronfman have not commented on the reports. Fortress Investment Group declined to comment when contacted by AGBI.

Paramount already has a strong link to the UAE through real estate. The Dubai developer Damac Properties signed a deal with Paramount Hotels and Resorts in 2013 to build real estate projects themed around the studio’s famous movies. Damac Paramount Tower Hotel And Residences Dubai opened in 2019, and there are plans for up to three more similar properties.

Mubadala Capital, the asset management subsidiary of the sovereign fund Mubadala Investment Co, launched in 2011 with a remit to invest primarily in private equity and public markets in North America and Europe.

As of March this year it had $24 billion of assets under management, $18 billion being from external investors including other sovereign funds, foundations, public pension funds, insurance companies, wealthy individuals and other asset managers, according to its website.

It has made 12 other investments so far in 2024. These include stakes in healthcare, fintech, education tech and business software startups, PitchBook data shows.

Of the 15 companies it has bought into this year, eight are from the United States, six from Europe and one is from the UAE. Eleven were venture capital agreements and four were buyouts or acquisitions, according to PitchBook.

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