NEW YORK (AP) 鈥� The merger between entertainment giant is set to go ahead after Edgar Bronfman Jr. withdrew a competing offer.
Bronfman, executive chairman of streaming service Fubo, told Paramount's special committee of directors Monday night that he would not proceed with his bid.
鈥淲hile there may have been differences, we believe that everyone involved in the sale process is united in the belief that Paramount鈥檚 best days are ahead,鈥� he said.
Bronfman, the former chairman and CEO of Warner Music, for Shari Redstone鈥檚 National Amusements, the controlling shareholder of Paramount, according to multiple media reports. He then upped that bid to $6 billion.
Paramount agreed last month to a merger deal with Skydance that will inject desperately needed cash into a legacy studio that has struggled to adapt to a shifting entertainment landscape.
Since then, during what's known as a 鈥済o shop鈥� period, a special committee of Paramount鈥檚 board had reached out to more than 50 third parties to determine whether they were interested in making offers. The go shop period was extended for Bronfman, but has now closed.
Shari Redstone鈥檚 National Amusements has owned more than three-quarters of Paramount鈥檚 Class A voting shares through the estate of her late father, . She had battled to maintain control of the company that owns CBS, which is behind blockbuster films such as 鈥淭op Gun鈥� and 鈥淭he Godfather.鈥�
The deal signals the rise of a new power player, Skydance founder David Ellison, the son of billionaire Larry Ellison, who founded the software company Oracle.
Skydance, based in Santa Monica, California, has helped produce some major Paramount hits in recent years, including Tom Cruise films like 鈥淭op Gun: Maverick鈥� and installments of the 鈥淢ission Impossible鈥� series.
The proposed combined company of Paramount and Skydance is valued at around $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鈥檚 oldest studios and has had a hand in releasing numerous films 鈥� from 鈥淪unset Boulevard鈥� and 鈥淭he Godfather,鈥� to 鈥淩aiders of the Lost Ark鈥� and 鈥淭itanic.鈥�
The Associated Press
