Edgar Bronfman Jr Withdraws from Paramount Global Race, Clearing Path for Skydance Media

Media veteran Edgar Bronfman Jr has withdrawn from the race to acquire Paramount Global, paving the way for Skydance Media to take control of the company. Bronfman, unable to secure necessary financing, ended his bid which had challenged an earlier $8.4 billion agreement between Paramount and Skydance.

In a dramatic turn of events, Edgar Bronfman Jr announced on Monday that he is withdrawing from the race to acquire Paramount Global. This move effectively clears the path for Skydance Media to take control of Shari Redstone's media empire, ending one of the most chaotic bidding wars in recent media history.

Bronfman revealed in a statement that his bidding group had informed Paramount's special committee about their decision to drop out of the process. He acknowledged Paramount Global's extraordinary assets and brands, despite the differences in the bidding process. Paramount's board special committee concluded the 'go shop' period after contacting more than 50 potential buyers. The company expects to finalize the deal with Skydance by the first half of 2025, pending regulatory approval.

Contributing to Bronfman's withdrawal was his inability to secure the required equity financing. Sources familiar with the matter cited last-minute dropouts among Bronfman's key equity partners. Last week, Bronfman's group had put forward a $6 billion bid, contesting Skydance's $8.4 billion agreement. Despite exploring all possible opportunities, Bronfman's team knew their offer would likely be rejected, leading to his decision to step back.

(With inputs from agencies.)