Bronfman drops bid to buy Paramount, clearing the way for Skydance deal

By Mike Murphy

Hollywood's biggest drama of the year appears to have reached its finale, as Edgar Bronfman Jr. late Monday dropped his 11th-hour bid to buy Paramount Global parent National Amusements.

That clears the way for Skydance Media to finally buy Shari Redstone's media empire, ending months of speculation and twists.

"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 said in a statement to the media Monday. "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."

In a statement Monday night, Paramount's special committee confirmed Bronfman had withdrawn his bid, and thanked him for his interest.

"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," chair Charles E. Phillips, Jr. said. Skydance's deal is expected to close in the first half of 2025, assuming it passes regulatory muster.

In July, Redstone agreed to sell her company for about $8 billion to David Ellison's Skydance, the independent studio behind "Top Gun: Maverick" and "Mission: Impossible - Dead Reckoning," among others.

Skydance would first buy National Amusements, then, Skydance and Paramount would merge. But that deal included a 45-day "go-shop period" in which the special Paramount committee was allowed to review other bids.

Bronfman made a final, $6 billion bid last week, shortly before the deadline was to expire. That included a $1.7 billion proposal that would have offered shareholders who are not Redstone a premium to cash out at $16 a share, rather than the $15 a share Skydance had proposed.

The Paramount board extended the deadline by 15 days, angering Skydance, which reportedly accused it of breach of contract.

But the New York Times reported late Monday that concern had developed over Bronfman's ability to secure enough financing.

Paramount's holdings include CBS, cable networks including MTV and Comedy Central, the namesake movie studio and the Paramount+ streaming service.

In April, Bob Bakish stepped down as Paramount's chief executive, and was replaced by a three-person office, amid reported tensions over the possible deal with Skydance. Earlier this month, Paramount announced a big round of layoffs.

Paramount shares (PARA) are down about 23% year to date.

MarketWatch's Bill Peters contributed to this report.

-Mike Murphy

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08-26-24 2237ET

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