Edgar Bronfman Jr. officially withdrew from the bidding process for Paramount Global on Monday, effectively paving the way for Skydance Media to take control of Shari Redstone's media conglomerate.
This marks the end of what has been one of the most intense and unpredictable bidding wars in recent media history, Bloomberg reported.
Following this, Paramount announced that it expects to complete the deal with Skydance in the first half of 2025.
In his announcement, Bronfman disclosed that his bidding consortium had notified Paramount's special committee of their decision to exit the process. "We continue to believe that Paramount Global is an extraordinary company, with an unrivaled collection of marquee brands, assets and people," he said in a statement.
"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," he added.
Paramount's board, through its special committee, also confirmed the conclusion of the "go shop" period, during which over 50 potential buyers were approached to assess their interest in acquiring the media company.
Paramount expects its deal with Skydance to be finalized in the first half of 2025, contingent on regulatory approval.
According to Reuters, Bronfman's bid faltered due to his inability to secure the necessary equity financing. A key setback occurred when several of his significant equity partners withdrew at the last moment because of a tight deadline to submit financial documents.
Just last week, Bronfman's investor group made a bold $6 billion offer to take control of Paramount by purchasing its controlling shareholder, National Amusements.
It posed a significant challenge to Paramount's existing $8.4 billion agreement with Skydance, which was secured in July.
"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.
Reuters reported that Bronfman's bid depended heavily on the involvement of wealthy individuals, some of whom became uneasy when their names surfaced in media reports.
When a key financial commitment fell through, Bronfman and his team attempted to find alternative funding, but ultimately ran out of time. Rather than presenting a proposal that was likely to be rejected, Bronfman opted to withdraw from the process altogether.
