04:47 AM EDT, 08/20/2024 (MT Newswires) -- Paramount Global ( PARAA ) received a $4.3 billion takeover bid from veteran media executive Edgar Bronfman Jr. through the acquisition of National Amusements which owns a controlling stake in the media company, Reuters reported Monday citing a person familiar with the matter.

Bronfman's offer includes $2.4 billion in debt and equity for National Amusements and will also contribute $1.5 billion to Paramount's balance sheet, which can be used to pay down debt, the source said.

The competing offer threatens to end an acquisition agreement reached last month with David Ellison's firm Skydance Media.

The agreement contains a 45-day "go-shop period" allowing Paramount to solicit and evaluate other offers that ends on Aug. 21 but can be extended.

If Paramount chooses to go with another buyer, it will have to pay Skydance a break-up fee of $400 million, which is being covered under Bronfman's bid to end the rival deal.

Bronfman declared his offer as superior as Paramount will no longer have to acquire Skydance in a previously agreed all-stock transaction valued at $4.75 billion, another person told Reuters.

A special committee of Paramount's board will meet on Wednesday to evaluate Bronfman's offer, according to the second source. The board committee may also extend the go-shop deadline to Sept. 5 to buy more time to assess the competing offer.

Paramount did not immediately respond to MT Newswires' request for comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)