Announcement of Rival Bid for Paramount Global Pulled by Business Wire
UPDATED, 4:30 PM ET: An announcement put out Wednesday by Business Wire, a service that distributes press releases on behalf of clients, about a purported new bid for Paramount Global was withdrawn later in the day.
A press release carried by Business Wire at 9:05 a.m. ET Wednesday from a company identified as “Apex Capital Trust,” described as “a conglomerate of financial institutions and financial services providers,” said Apex had submitted a rival bid for Paramount Global for “up to $43 billion.”
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However, at about 3 p.m. ET, Business Wire released a “kill” request for the press release and removed it from the service. Reps for Business Wire did not respond to a request for comment. A PR rep for “Apex Capital Trust” included in the release did not respond to a request for comment.
The seemingly bogus press release came nearly a month after Paramount Global and Skydance, David Ellison’s smaller media and production company, announced a two-part transaction that would result in Skydance buying out Redstone’s National Amusements Inc. and then merging with Paramount, whose properties include CBS, Paramount Pictures, Showtime/MTV Entertainment Studios and Paramount Media Networks. Skydance’s buyout of NAI and Paramount is backed by RedBird Capital Partners and Oracle billionaire Larry Ellison (David’s father).
Under a “go-shop” provision in that agreement, Paramount Global has the right to solicit a better offer in a 45-day window, which expires 11:59 p.m. ET on Aug. 21. If Paramount opts to go with a rival bid, the company would need to pay a $400 million breakup fee to the Skydance investor group.
The press release distributed by Business Wire quoted Tatiana Logan, identified as “general counsel for Apex Trust.”
According to a report by Bloomberg, Logan said in an emailed statement that the purported offer was superior to the Skydance deal and contingent on Paramount not selling off any of its subsidiaries. “We are prepared to provide all necessary documentation for comprehensive due diligence,” Logan wrote, according to Bloomberg. “Like most other trusts, Apex Capital Trust is not public facing.”
Shares of Paramount Global closed up 1.6% Wednesday, to $11.42/share. The stock was down as much as 0.9% in after-hours trading.
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