In a new development in the media merger landscape, media tycoon Edgar Bronfman Jr. is reportedly gearing up to bid for Paramount Global (NASDAQ:PARA) (NASDAQ:PARAA) and National Amusements.

What Happened: Bronfman, the former head of Warner Music and Seagram, is reportedly in discussions with various individuals and companies, including Fortress Investment Group, streaming device maker Roku Inc. (NASDAQ:ROKU), and Hollywood producer Steven Paul, to support his bid, according to The Wall Street Journal's unnamed sources.

The bid could be submitted in the coming days, but talks are ongoing and may not culminate in a formal bid, the report said on Thursday.

This move comes on the heels of Shari Redstone's agreement to sell her media empire to David Ellison's Skydance Media, a deal currently in a "go-shop period" ending Aug. 21. During this period, other potential buyers can submit offers. If Paramount chooses another offer, it will owe Skydance a breakup fee of $400 million, as per a securities filing. Bronfman had previously expressed interest in buying National Amusements but did not make a bid.

Benzinga has yet to receive any comment from Paramount, Bronfman Jr.'s Waverley Capital, Fortress and Roku on the development.

Why It Matters: If Bronfman secures the financing for this bid, he will face competition from David Ellison and his father, Larry Ellison, co-founder of Oracle, who have the right to counter any incoming bids. Bronfman's plan includes offering Paramount's shareholders the opportunity to own a larger portion of the company than they would under the Skydance deal. He has also discussed bringing in new partners from technology and other industries for potential strategic partnerships if he takes over Paramount.

Paramount recently reported its first-ever quarterly profit from its streaming business, which includes Paramount+ and Pluto TV. However, it also wrote down the value of its cable TV networks by $6 billion, indicating the challenges facing legacy TV conglomerates. Paramount's second-quarter revenue was down 11% year-over-year, missing a Street consensus estimate.

If Bronfman makes a bid, the special committee of directors at Paramount will decide whether to extend the go-shop period. Under the terms of the go-shop period, the committee can extend the period if it is in advanced discussions with another potential buyer.

Price Action: Paramount Global's Class B stock was trading 0.091% higher at $10.97 during Friday's pre-market after closing at $10.96 on Thursday, according to Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari