(New York) The merger between entertainment giant Paramount and production company Skydance Media is set to go ahead after Edgar Bronfman Jr. withdrew a competing offer.
Mr. Bronfman, executive chairman of streaming service Fubo, told Paramount’s special committee of directors on Monday night that he would not pursue its offer.
“While there were differences, we believe everyone involved in the sale process is united in the belief that Paramount’s best days are ahead,” he said.
Mr Bronfman, the former chairman and chief executive of Warner Music, had initially offered $4.3 billion for Paramount’s majority shareholder Shari Redstone’s National Amusements, according to multiple media reports. He later increased that offer to $6 billion.
Paramount agreed to a merger deal with Skydance last month, bringing a desperately needed cash injection to the studio as Paramount has struggled to adapt to the changing entertainment landscape.
Since then, during what is known as a solicitation period, a special committee of Paramount’s board has contacted more than 50 third parties to determine whether they were interested in making offers. The solicitation period was extended for Mr. Bronfman, but it is now closed.
Shari Redstone’s National Amusements Company owns more than three-quarters of Paramount’s Class A stock through the estate of her late father, Sumner Redstone. She has fought to retain control of the company that owns CBS, the maker of such blockbuster films as Top Gun And The Godfather.
The deal signals the emergence of a powerful new player, Skydance founder David Ellison, the son of billionaire Larry Ellison, who founded software company Oracle.
Skydance, headquartered in Santa Monica, California, has helped produce some of Paramount’s biggest hits in recent years, including Tom Cruise films like Top Gun: Maverick and episodes of the series Mission impossible.
The proposed combined company between Paramount and Skydance is valued at approximately $28 billion. The deal is expected to close in September 2025, subject to regulatory approval.
Paramount, founded in 1914 as a distributor, is one of the oldest studios in Hollywood and has been involved in the release of many films, from Sunset Boulevard And The Godfather has Raiders of the Lost Arktelling the stories of Indiana Jones, and Titanic.