Bronfman withdraws bid for Paramount, making way for Skydance deal

27th Aug 2024 09:45

(Sharecast News) - Edgar Bronfman Jr officially withdrew his bid to acquire Paramount Global on Tuesday, effectively clearing the way for Skydance Media to take control of the company.

Bronfman, a veteran media executive, reportedly made the decision after his group of investors failed to secure the necessary equity financing, which was attributed to the last-minute withdrawal of key partners, according to Reuters.

Bronfman's group recently proposed a $6bn offer to take over Paramount by purchasing its controlling shareholder, National Amusements.

However, the bid was seen as a challenge to an existing $8.4bn agreement between Paramount and Skydance, struck in July.

Despite extensive efforts over nearly eight months, Bronfman's bid fell short, leaving Skydance as the likely acquirer.

Paramount's special committee, which had contacted over 50 potential buyers during a 'go shop' period, concluded that Skydance's offer provided the most value.

The deal with Skydance was expected to close in the first half of 2025, pending regulatory approval.

Charles Phillips Jr, chair of Paramount's special committee, expressed confidence in the Skydance deal, citing its potential to deliver immediate value and long-term growth in an evolving media landscape.

Neither Skydance nor Shari Redstone, owner of National Amusements, had commented on the development by Tuesday morning, London time.

Reporting by Josh White for Sharecast.com.