Edgar Bronfman Jr., who made an eleventh hour bid to take management of Paramount and purchase Nationwide Amusements, is dropping his bid, clearing the way in which for a Skydance takeover.
In an announcement obtained by IndieWire, Bronfman congratulated the Skydance group and stated that he notified Paramount’s board of his resolution.
“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 stated. “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 prolonged the “go-shop” interval by 15 days after Bronfman made his provide of $6 billion. David Ellison through 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 extra engaging to shareholders, as a result of his provide didn’t require Paramount shopping for one other firm, in Ellison’s case Skydance itself, in an all-stock provide, which he argued would’ve diluted the inventory for different shareholders and been a sweetheart deal for Nationwide 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 bunch of backers, with a minimum of 19 completely different people and firms concerned, so as to mount his bid. Had Bronfman taken over nonetheless, it could have meant extra layoffs and cuts, probably even the sunsetting of Paramount+, past what Skydance had deliberate beneath Paramount. Ellison has stated he’s earmarked $2 billion price of cuts inside Paramount, whereas Bronfman stated he recognized $3 billion.
With Bronfman out of the way in which, Ellison and Skydance must 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 absolutely shut till Q3 2025.
