Edgar Bronfman Jr., who made an eleventh hour bid to take management of Paramount and purchase National Amusements, is dropping his bid, clearing the way for a Skydance takeover.
In a press release obtained by IndieWire, Bronfman congratulated the Skydance staff and mentioned that he notified Paramount’s board of his determination.
“Tonight, our bidding group informed the special committee that we will be exiting the go-shop process. It was a privilege to have the opportunity to participate,” Bronfman mentioned. “We continue to believe that Paramount Global is an extraordinary company, with an unrivaled 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. We congratulate the Skydance team and thank the special committee and the Redstone family for their engagement during the go-shop process.”
Paramount final week extended the “go-shop” period by 15 days after Bronfman made his supply of $6 billion. David Ellison by way of Skydance has been ready to supply $8 billion complete, however Paramount felt Bronfman’s deal was viable sufficient to proceed the window previous the deadline.
Bronfman believed his deal was more attractive to shareholders, as a result of his supply didn’t require Paramount shopping for one other firm, in Ellison’s case Skydance itself, in an all-stock supply, which he argued would’ve diluted the inventory for different shareholders and been a sweetheart deal for National Amusements controlling shareholder Shari Redstone.
Paramount had raised questions on Bronfman’s financing, however the chairman of Fubo and the inheritor to the Seagram’s fortune had quickly put collectively a gaggle of backers, with at the very least 19 totally different people and firms concerned, so as to mount his bid. Had Bronfman taken over nonetheless, it might have meant further layoffs and cuts, probably even the sunsetting of Paramount+, past what Skydance had deliberate beneath Paramount. Ellison has mentioned he’s earmarked $2 billion value of cuts inside Paramount, whereas Bronfman mentioned he recognized $3 billion.
With Bronfman out of the best way, Ellison and Skydance needs to be poised to formally take over as soon as the prolonged 15-day window closes, although no different bidders past Bronfman have been allowed to submit gives on this stage. It’s anticipated that the merger between Skydance and Paramount wouldn’t totally shut till Q3 2025.
