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Billionaire Edgar Bronfman Jr has withdrawn a $6bn bid to take control of Paramount, the latest twist in a chaotic saga over the Hollywood group’s future.
Bronfman said he notified the Paramount board committee of his decision on Monday night.
“It was a privilege to have the opportunity to participate,” he said in a statement. “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.”
Bronfman last week gatecrashed a previously agreed merger between Paramount and Skydance, the studio led by billionaire David Ellison, just before the expiration of a “go shop” period for the group to explore other deals. His exit paves the way for Skydance to complete its merger with Paramount.
Paramount’s board committee on Monday confirmed that the “go shop” period was over and reiterated its support for the Skydance deal, which it expects to close in the “first half of 2025”.
“Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our Special Committee continues to believe that the transaction we have agreed with Skydance delivers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape,” the committee said in a statement.
Bronfman, the 69-year-old heir to the Seagram spirits business, had spent the past week seeking financing from a wide range of investors to join his Paramount bid.
He had secured commitments from Fortress, which is majority owned by Abu Dhabi’s Mubadala investment arm; film producer Steven Paul; crypto entrepreneur Brock Pierce; and Nurali Aliyev, the grandson of the autocratic former ruler of Kazakhstan, the Financial Times reported last week.
Bronfman’s quick entrance and exit is the latest twist in a long battle over Paramount, home to the 98-year old studio behind cinema classics such as The Godfather and Titanic.
Skydance had said it would invest more than $8bn in a deal agreed with Paramount in July but had given the group until August 21 to entertain a higher offer.
After Bronfman’s incursion, Skydance on Thursday sent a scathing letter to Paramount’s board, accusing it of an “incurable, material breach” of the terms of their merger.
Paramount, like its peers in legacy media, has struggled to cope with the decline of cable television and rise of online streaming. This month, it wrote down the value of its cable channels — which include MTV, Nickelodeon and Comedy Central — by $6bn.