New York: Media veteran Edgar Bronfman Jr. has officially withdrawn from the bidding war for Paramount Global, paving the way for Skydance Media to take control of Shari Redstone’s media empire. Bronfman’s decision concludes one of the most turbulent media acquisition battles in recent memory.
In a statement released by Bronfman, he confirmed that his bidding group informed Paramount’s special committee of their decision to withdraw from the process. “We continue to believe that Paramount Global is an extraordinary company, with an unrivaled collection of marquee brands, assets, and people,” Bronfman stated. “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.”
Paramount’s special committee, responsible for evaluating potential buyers, stated that it had concluded its “go shop” period, during which more than 50 parties were contacted to assess their interest in acquiring the company. The committee expects the deal with Skydance Media to close in the first half of 2025, pending regulatory approval.
A source familiar with the situation revealed that Bronfman’s bid collapsed due to his inability to secure the necessary equity financing. Several key equity partners backed out at the last minute, leaving Bronfman without the financial backing needed to mount a serious challenge against Skydance’s offer.
Bronfman had previously led a group of investors in a $6 billion bid to take control of Paramount, which would have involved buying out the controlling shareholder, National Amusements. This proposal threatened to derail an $8.4 billion agreement between Paramount and Skydance, which had been reached in July.
Also Read | Fallout from Global Windows Outage Hits CrowdStrike’s Financials
“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,” said Charles Phillips Jr., chair of Paramount’s special committee.
While Skydance declined to comment, sources disclosed that Bronfman’s bid relied heavily on the participation of high-net-worth individuals. Some of these individuals became hesitant after seeing their names mentioned in news coverage about the bid. As commitments from certain backers fell through, Bronfman and his team scrambled to secure alternative financing but ultimately ran out of time.
Faced with these challenges, Bronfman chose to withdraw from the process rather than submit an offer that he knew would be rejected by Paramount’s special committee.
