The merger between entertainment giant Paramount and media company Skydance is set to go ahead next Edgar Bronfman Jr. withdrew a competing offer.
Bronfman, executive chairman of streaming service Fubo, told Paramount's special board of directors Monday night that he would not proceed with his bid.
“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,” he said.
Bronfman, the former chairman and CEO of Warner Music, had originally offered $4.3 billion for Shari Redstone's National Amusements, the controlling shareholder of Paramount, according to multiple media reports. It then increased that offer to $6 billion.
Paramount last month agreed to a merger deal with Skydance that will inject desperately needed cash into a legacy studio struggling to adapt to a changing entertainment landscape.
Since then, during the period known as the “go shop,” a special committee of Paramount's board has contacted more than 50 third parties to determine whether they are interested in making offers. The go shop period was extended for Bronfman, but has now closed.
Shari RedstoneNational Amusements owns more than three-quarters of Paramount's Class A voting stock through her late father's estate, Sumner Redstone. He had fought to keep control of the company that owns CBS, which is behind such blockbusters as “Top Gun” and “The Godfather.”
The deal marks the rise of a new power player, the founder of Skydance David Ellisonson of a billionaire Larry Ellisonwho founded the software company Oracle.
Skydance, based in Santa Monica, Calif., has helped produce some of Paramount's major hits in recent years, including Tom Cruise movies like “Top Gun: Maverick” and parts of the “Mission Impossible” series.
The proposed combined company of Paramount and Skydance is valued at about $28 billion. The deal is expected to close in September 2025, pending regulatory approval.
Founded in 1914 as a distributor, Paramount is one of Hollywood's oldest studios and has contributed to the release of many films – from “Sunset Boulevard” and “The Godfather” to “Raiders of the Lost Ark” and “Titanic”.
