Edgar Bronfman Jr. and his backers have withdrawn their $6 billion offer for Paramount Global, appearing to clear the way for Skydance Media to move forward with its merger proposal.
Bronfman Jr. entered the sales process late, submitting his offer to take over Paramount Global and its renowned studio Paramount Pictures just days before the end of the “go-shop” period during which the media group could consider “better” offers.
“This evening, our bidding group informed the Special Committee that we will terminate the Go-Shop process,” Bronfman Jr., executive chairman of sports streaming platform Fubo and former CEO of Seagram, vice chairman of Vivendi Universal and CEO of Warner Music, said in a press statement.
“It was a privilege to have the opportunity to participate. We continue to believe that Paramount Global is an exceptional company with an unmatched collection of brands, assets and employees. While there may have been differences of opinion, we believe that everyone involved in the sale process is united in the belief that Paramount’s best days are yet to come. We congratulate the Skydance team and thank the Special Committee and the Redstone family for their commitment throughout the go-shop process.”
Bronfman Jr. reportedly withdrew because there was not enough time to prepare all the details of the proposal before the “go-shop” period expired. Others said some of the businessman’s backers felt uncomfortable sharing personal financial information with Paramount Global’s special committee.
Last week, Bronfman Jr. increased his offer from $4.3 billion to $1.7 billion. It consisted of $2.4 billion for National Amusements owned by Shari Redstone, which owns a majority stake in Paramount Global, a $1.5 billion cash injection to pay off debt and a $400 million payment to cover the severance payment Paramount Global would have to make to Skydance Media if the company pulled out of the deal.
The proposal, backed by a consortium including Hollywood producer Steven Paul, crypto investor Brock Pierce and Fortress Investment Group, resulted in an extension of the 45-day “go-shop” window to September 5. It was originally scheduled to expire on August 21.
The RedBird Capital Partners-backed offer by Skydance Media chief David Ellison to pay $2.4 billion for National Amusements and merge with Paramount Global is expected to close in the first half of 2025 and value the combined company at $28 billion.
