Los Angeles, California – Edgar Bronfman has now withdrawn his $6 billion bid to take control of Paramount Global, leaving the fate of the media giant in the hands of Skydance. After raising his initial offer by $1.7 billion just days ago, the former Vivendi vice-chair decided to step back from the bidding process.
In a statement provided on Monday evening, Bronfman expressed his belief in the potential of Paramount Global, citing its exceptional collection of brands, assets, and talent. Despite differences in approach, there is a shared belief among those involved in the sale process that Paramount’s best days are ahead.
The development comes amid a period of decline for Paramount Global, as the company recently announced significant layoffs of 15% of its U.S.-based staff. Facing challenges with its linear TV assets, Paramount took a nearly $6 billion write-down of its cable network assets earlier this month as it focuses on its direct-to-consumer streaming strategy with Paramount+.
Bronfman’s bid, which involved about 20 investors, aimed to secure a controlling stake in Paramount through special Class A voting shares. His offer, along with Skydance’s $8.4 billion proposal for a full merger, sparked competition to determine which bid would provide the greatest value for the company.
As negotiations unfolded, there were indications that Skydance might consider pulling its offer, raising doubts about the feasibility of reaching a deal with Paramount. Ultimately, it appears that Bronfman’s bid was unable to match the potential of Skydance’s proposal, which includes a total investment of $28 billion.
With the race for Paramount now concluded and Skydance poised to finalize the acquisition, stakeholders and industry experts are watching closely to see how the merger will reshape the entertainment landscape. The decision marks a significant moment for the entertainment industry, with implications for the future direction of Paramount Global under new ownership and leadership.