(Bloomberg) -- Edgar Bronfman Jr. formally submitted a $4.3 billion bid to take control of Paramount Global and quash an existing offer from Skydance Media, according to a person familiar with the proposal.

Most Read from Bloomberg

• Sydney Central Train Station Is Now an Architectural Destination

• Chicago's Migrant Surge Is Stirring Trouble for Democrats in DNC Host City

• With Housing Costs High, Democrats Hone YIMBY Message

• With Self-Driving Vans, Hamburg Tries to Make Microtransit Work

• UK Transport Minister Clears Path for More 20mph Speed Zones

The media executive and Seagram Co. spirits heir is offering to buy National Amusements Inc., the Redstone family holding company that owns the majority of Paramount’s voting stock, for about $2.4 billion, including liabilities, according to the person, who asked to not be identified because they weren’t authorized to speak publicly.

Bronfman also plans to invest $1.5 billion in Paramount to reduce the company’s debt, receiving shares worth $16 each in exchange. Non-Redstone holders of the company’s Class A voting stock will have the option of receiving $24.53-a-share in cash or 1.53 Class B shares. Within two years, Bronfman plans to eliminate Paramount’s dual-share classes, extending voting privileges to all investors.

Bronfman plans to pay a $400 million breakup fee for the Skydance deal. Overall, he’s raised $5.5 billion, with plans to sweeten his offer later.

Paramount nonvoting shares closed down 1.2% to $10.94 in New York. The Wall Street Journal reported on the Bronfman offer late Monday.

The parent of CBS, MTV and other media businesses has already accepted an offer from Skydance, led by David Ellison, the son of Oracle Corp. co-founder Larry Ellison. Their merger agreement includes a 45-day period in which Paramount can review other offers. That expires Wednesday night, though Paramount can extend discussions with other parties until Sept. 5.

The Ellison-led group also offered $2.4 billion for National Amusements and agreed to invest $6 billion more in buying Paramount shares and paying down debt. It plans to merge Skydance into Paramount for shares worth $4.75 billion.

Bronfman is expected to argue that his proposal is superior because it will result in less dilution for Paramount’s non-Redstone shareholders. His partners include Fortress Investment Group and BC Partners Credit. His team includes film producer Steven Paul, former Turner Broadcasting executive John Martin and Jonathan Miller, a longtime tech executive who was partners with Paramount Chair Shari Redstone.

Representatives of a special committee of Paramount’s board didn’t respond to requests for comment.

Money manager Mario Gabelli, the largest holder of Paramount voting shares other than the Redstone family, said in an interview that Bronfman has “credibility.” He also said he isn’t sure if Bronfman is offering enough to top Ellison.

“In terms of fairness, I would think the board should spend another couple of weeks thinking about it,” he said.

Paramount, assembled over decades by the late mogul Sumner Redstone, has struggled lately as consumers shift their viewing habits from traditional TV to streaming.

Bronfman has a long, somewhat rocky, history as a media executive. He acquired and then sold Universal Studios-parent MCA Inc., and served as chief executive officer of Warner Music Group. He presently serves as chairman of FuboTV Inc., a streaming TV company that won an injunction last week to stop the launch of sports streaming service Venu.

--With assistance from Yiqin Shen.

(Updates with more offer details beginning in third paragraph.)

Most Read from Bloomberg Businessweek

• Fox News Embraces a Different Kind of Guest: Democrats

• Musk Gets the Warlord Seal of Approval for the Cybertruck

• FOMO Frenzy Fuels Taiwan Home Prices Despite Threat of China Invasion

• Five Questions With Deval Patrick at the DNC

• ‘I’m So Scared’: NFL Players on How Betting Changes the Sport

©2024 Bloomberg L.P.