Edgar Bronfman Jr. and his backers have withdrawn a $6bn bid for Paramount Global bid, appearing to pave the way for Skydance Media to proceed with its merger proposal.
Bronfman Jr. was a late arrival to the sale process and submitted the bid to acquire Paramount Global and its storied Paramount Pictures studio last week, days before the expiry of the “go-shop” window, in which the media conglomerate was able to consider “superior” offers.
“Tonight, our bidding group informed the special committee that we will be exiting the go-shop process,” Bronfman Jr., the executive chairman of sports streaming platform Fubo and a former CEO of Seagram, vice-chairman of Vivendi Universal, and CEO of Warner Music, said in a statement to press.
“It was a privilege to have the opportunity to participate. 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.”
Reports said Bronfman Jr. pulled out because there was not enough time to prepare all detailed aspects of the proposal before the end of the “go-shop” period. Others said some of the businessman’s backers were uncomfortable sharing personal financial details with Paramount Global’s special committee.
Bronfman Jr. increased by $1.7bn his $4.3bn offer comprising $2.4bn for Shari Redstone’s National Amusements, owner of a controlling interest in Paramount Global, a $1.5bn injection into the balance sheet to pay down debt, and a $400m payment to cover the termination fee Paramount Global would pay Skydance Media were it to kill that deal.
The proposal, backed by a consortium including Hollywood producer Steven Paul, crypto investor Brock Pierce, Fortress Investment Group, triggered an extension of the 45-day “go-shop” window to September 5. It was originally set to expire on August 21.
The offer from Skydance Media head David Ellison, backed by RedBird Captial Partners, to pay $2.4bn for National Amusements and merge with Paramount Global is expected to close in the first half of 2025 and values the merged entity at $28bn.
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