Edgar Bronfman Jr. Withdraws $6B Offer for Paramount, Easing Skydance Merger Path

Edgar Bronfman Jr. has officially withdrawn his $6 billion bid to take control of Paramount Global, a move that clears the way for a potential $28 billion merger between the media giant and Skydance.

The decision, announced by Bronfman on Monday, marks the end of a short-lived challenge for Skydance trying to acquire Paramount. Earlier this month, Bronfman — a former executive at Vivendi and Warner Music — quickly put together a group of investors and raised his initial bid to acquire Paramount from $4.3 billion to $6 billion. Despite this, doubts emerged about the viability of his financing, ultimately leading to his decision to exit the “go-shop” process. This allowed Paramount to seek alternative bids after initially agreeing to a merger with Skydance.

“We continue to believe that Paramount Global is an extraordinary company, with an unrivaled collection of marquee brands, assets, and people,” Bronfman said in a statement.

He also congratulated the Skydance team and thanked the special committee and the Redstone family for their involvement in the process.

The Skydance-Paramount merger, valued at $28 billion, has been marked by intense negotiations and legal challenges. Skydance, led by David Ellison, had earlier expressed concerns over Paramount’s handling of the merger terms, adding pressure to the already complex bidding process. Despite these hurdles, Skydance’s $8.4 billion offer, which includes a full merger and a significant capital infusion, now stands as the leading option to acquire Paramount.

With Bronfman’s withdrawal, Skydance is one step closer to completing its acquisition, which could mean the end of the Redstone family’s decades-long ownership of Paramount. Although the deal is still subject to regulatory review, it has the potential to reshape the landscape of the media industry, combining Skydance’s strengths in film and television production with Paramount’s extensive library and broadcast assets.

As traditional media companies like Paramount navigate declining linear TV revenues and the costly shift to streaming, the Skydance merger is seen as a strategic move to strengthen the company’s financial position and streamline its operations. Paramount, known for producing iconic films such as The Godfather and Titanic, has also been grappling with financial challenges, including a significant write-down of its cable network assets and recent layoffs affecting 15% of its U.S. workforce.

With Bronfman out of the picture, all eyes are now on Skydance as it seeks to finalize the deal and chart a new course for Paramount Global.

With input from The Guardian and Deadline.