Edgar Bronfman Jr. dropped Paramount’s bid, paving the way for the Skydance merger

The merger between entertainment giant Paramount and media company Skydance will move forward after Edgar Bronfman Jr. having withdrawn the competing proposal.

Bronfman, executive chairman of streaming service Fubo, told a special committee of Paramount directors Monday night that he would not proceed with his bid.

“While there may be disagreements, we believe that everyone involved in the sales 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, Paramount’s controlling shareholder, according to multiple media reports. He then increased that request to $6 billion.

Paramount agreed last month to a merger deal with Skydance that will inject much-needed cash into the legacy studio struggling to adapt to the changing entertainment landscape.

Since then, during what is known as the “shop-to-shop”, a special committee of Paramount’s board has reached out to more than 50 third-party companies to determine whether they are interested in making offers. The shopping period has been extended at Bronfman, but it is now closed.

Shari Redstone’s National Amusements owns more than three-quarters of Paramount’s Class A shares through the estate of her late father, Sumner Redstone. He once fought for control of CBS, the company behind such blockbusters as “Top Gun” and “The Godfather.”

The deal marks the rise of a new power player, Skydance founder David Ellison, son of billionaire Larry Ellison, who founded the software company Oracle.

Skydance, based in Santa Monica, California, has helped produce Paramount’s biggest hits in recent years, including Tom Cruise films like “Top Gun: Maverick” and installments of the “Mission Impossible” series.

The proposed combined company of Paramount and Skydance is valued at approximately $28 billion. The deal is expected to close in September 2025, pending regulatory approval.

Paramount, founded in 1914 as a distributor, is one of Hollywood’s oldest studios and has been responsible for releasing many films – from “Sunset Boulevard” and “The Godfather,” to “Raiders of the Lost Ark” and “- Titanic.”

– The Associated Press is not defined