Edgar Bronfman Jr. has walked away from bidding for Shari Redstone’s media empire, paving the way for the company to be sold to David Ellison’s Skydance Media.
The Wall Street Journal reports Bronfman said in a statement that his bidding group informed Paramount’s special committee of directors on Monday evening that it would be exiting the so-called “go-shop” process.
“We continue to believe that Paramount Global is an extraordinary company, with an unrivaled collection of marquee brands, assets and people,” Bronfman said in the 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,” he added. “We congratulate the Skydance team and thank the special committee and the Redstone family for their engagement during the go-shop process.”
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| Edgar Bronfman Jr |
Bronfman was up against a deadline this week to submit a final offer for Redstone’s media empire—this time with more clarity around his financing commitments. Bronfman’s investor group had included Fortress Investment Group and BC Partners Credit.
Ellison’s roughly $8 billion offer involves buying National Amusements and merging Skydance into Paramount. The deal would put $1.5 billion on Paramount’s balance sheet that can be used to pay down debt. Additionally, it would provide more than $4 billion to buy out about 50% of nonvoting Paramount shares at $15 each, or allow them to roll into the new company.
Bronfman—whose family once owned liquor giant Seagram—prides himself on helping steer companies through big transformations. The 69-year-old helped to reshape the music industry as an investor and executive, though he’s had a mixed record of success in the broader media business.
He previously ran Warner Music and currently serves as executive chairman of FuboTV.
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