Edgar Bronfman Jr. withdraws offer for Paramount and enables merger with Skydance

NEW YORK (AP) — The merger between entertainment giant Paramount and media company Skydance is set to go ahead after Edgar Bronfman Jr. withdrew a competing offer.

Bronfman, CEO of streaming service Fubo, told Paramount's special committee on Monday evening that he would not pursue his offer.

“While there may have been differences of opinion, we believe everyone involved in the sale process agrees that Paramount's best days are still ahead of it,” he said.

Bronfman, the former chairman and CEO of Warner Music, initially offered $4.3 billion for Shari Redstone's National Amusements, Paramount's majority shareholder, according to several media reports. He later increased his bid to $6 billion.

Paramount last month agreed to a merger deal with Skydance that would inject much-needed cash into the long-established studio, which is struggling to adapt to the changing entertainment landscape.

Since then, a special committee of Paramount's board of directors has contacted more than 50 third parties during a so-called “go-shop” period to determine whether they would be interested in making offers. The go-shop period was extended for Bronfman but has since expired.

Shari Redstone's National Amusements owned more than three-quarters of Paramount's Class A voting stock through the estate of her late father, Sumner Redstone. She had fought to keep control of the company that owns CBS, the producer of blockbuster films such as “Top Gun” and “The Godfather.”

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

Skydance, based in Santa Monica, California, has been involved in the production of some of Paramount's big hits in recent years, including Tom Cruise films such as “Top Gun: Maverick” and parts of the “Mission Impossible” series.

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

Founded in 1914 as a distributor, Paramount is one of Hollywood's oldest studios and has been involved in the release of numerous films – from “Sunset Boulevard” and “The Godfather” to “Raiders of the Lost Ark” and “Titanic”.