Edgar Bronfman Jr., who made an 11th hour bid to take control of Paramount and buy National Amusements, is dropping his bid, clearing the way for a Skydance takeover. In a statement obtained by IndieWire, Bronfman congratulated the Skydance team and that he notified Paramount’s board of his decision.
“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. “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 last week extended the “go-shop” period by 15 days after Bronfman made his offer of $6 billion.
David Ellison via Skydance has been prepared to offer $8 billion total, but Paramount felt Bronfman’s deal was viable enough to continue the window past the deadline. Bronfman believed his deal was more attractive to shareholders, because his offer did not require Paramount buying another company, in Ellison’s case Skydance itself, in an all-stock offer, which he argued would’ve diluted the stock for other shareholders and been a sweetheart deal for National Amusements controlling shareholder Shari Redstone. Paramount had raised questions about Bronfman’s financing, but the chairman of Fubo and the heir to the Seagram’s fortune had rapidly put together a group of backers, with at least 19 different individuals and companies involved, in order to mount his bid.
More to come...
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