The veteran media executive Edgar Bronfman Jr has abandoned a $6bn (£4.5bn) bid for Paramount Global, clearing the path for the conglomerate’s multibillion-dollar merger with the production group Skydance Media.
Bronfman, the former chief executive of Warner Music, had gathered a consortium of investors in an attempt to gazump the proposed merger between Paramount and Skydance, which had been paused to allow Paramount to consider other offers.
A 45-day “go-shop” clause in the merger agreement, allowing Paramount to solicit and evaluate other offers, opened the door to Bronfman . Last week, he emerged with a $4.3bn bid for National Amusements – the vehicle that holds the media tycoon Shari Redstone’s controlling stake in Paramount. Days later, Bronfman’s consortium upped its offer to $6bn.
However, Paramount, which is one of Hollywood’s best-known companies and also owns TV networks including CBS, Nickelodeon and the UK’s Channel 5, said on Tuesday that Bronfman had withdrawn his offer.
Bronfman reportedly failed to come up with the equity to finance the deal after a few of his partners dropped out at the last minute, according to Reuters.
Bronfman said: “We continue to believe that Paramount Global is an extraordinary company, with an unrivalled collection of marquee brands, assets and people. While there may have been differences, we believe that everyone involved in the sale process is united in the belief that Paramount’s best days are ahead.”
His failed bid paves the way for the original merger with Skydance, which values Paramount at $28bn.
The companies announced in July they had reached a deal that would involve Skydance investing $8bn into the new company as part of the merger. Skydance would then pay a further $2.4bn to buy National Amusements, the Redstone-owned cinema operator that holds nearly 80% of voting shares in Paramount.
The deal will, if it is completed, sever links with the Redstone family, whose media empire has included Paramount since 1994.
Paramount is behind classic films such as The Godfather, Titanic and Breakfast at Tiffany’s. Skydance, a film production group, is led by the producer David Ellison, whose father is Larry Ellison, the tech tycoon who co-founded Oracle.
Paramount said it had contacted more than 50 potential bidders during the go-shop period to see if they had any interest in making an offer.
“We thank Mr Bronfman and his investor group for their interest and efforts,” said Charles E Phillips Jr, the chair of Paramount’s special committee, which had been exploring other offers on behalf of the business.
“Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our special committee continues to believe that the transaction we have agreed with Skydance delivers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape,” he added.
The Skydance deal is expected to complete in the first six months of 2025, subject to regulatory approvals.
