Tycoon Edgar Bronfman Jr. withdraws his bid to buy Paramount Global

This Monday, US mogul Edgar Bronfman Jr. withdrew  the offer he made last week to buy Paramount Global for $6 billion.

It was the businessman himself who announced this unexpected decision. He did so in a statement obtained by Variety in which he assured that it had been a "privilege" to participate in the negotiations:

"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."Edgar Bronfman Jr, US magnate.

The businessman assured that, although they still believed in the value presented by Paramount Global as an asset in their conglomerate, they had not been able to reach a satisfactory agreement for both parties and, in view of that, they preferred to abandon the bid.

"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." said Bronfman Jr.

The decision leaves the way clear for SkyDance Media, the company that already announced its intention to acquire the entertainment giant for $8 billion and that saw in recent weeks how its efforts to achieve the merger could have been in vain.

It all happened a couple of weeks ago as part of a new attempt by Paramount's special committee to get more bids in. After sending a letter to Skydance Media where the company informed that it would listen to more offers, Edgar Bronfman Jr. showed up and offered $4.3 billion.

A figure that he later decided to raise to $6 billion but that was still insufficient to match the sum offered by Skydance Media who will finally be the company that will take over the entertainment giant.

"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," detailed Paramount Global Special Committee chairman Charles E. Phillips.

The transaction by which Paramount Global will complete its merger with Skydance Media is expected to take place during the first half of 2025.