Edgar Bronfman Jr. has withdrawn his bid to buy Paramount, The Hollywood Reporter confirmed Monday evening.
“Tonight, our bidding group informed the special committee that we will be exiting the go-shop process. It was a privilege to have the opportunity to participate,” Bronfman said in a statement to THR. “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.”
Bronfman initially submitted a roughly $4.3 billion bid last week, which included $2.4 billion in debt and equity for Sheri Redstone’s holding company, National Amusements. Bronfman would also have contributed $1.5 billion to Paramount’s balance sheet. A few days later, he raised the number to $6 billion.
With Bronfman, heir to the Seagram’s liquor family fortune, out of the picture, the dust has settled for Skydance to move forward with its deal for Paramount. Executives at the company say that they expect the deal to close next year, pending regulatory approvals.
The merger proposal will see David Ellison and Gerry Cardinale’s RedBird Capital Partners investing $2.4 billion to buy National Amusements. If the deal closes, the bid values a merged Skydance-Paramount at $28 billion.
Bronfman was a last minute bidder for Paramount, lining up a number of other co-investors and partners, including media veterans Jon Miller and John Martin, as well as Fortress. His initial offer caused Paramount’s special board committee to extend the “go shop” period in which the company could seek a higher offer, to no avail.