Businessman Edgar Bronfman Jr. has withdrawn his offer to buy Paramount Global (PARA), clearing a path for privately held Skydance Media to purchase the entertainment company.
In a news release, Bronfman said he had told Paramount’s special committee formed to evaluate acquisition offers that he is dropping his bid for the company.
For its part, the special committee of Paramount’s board of directors said that it expects a deal to be acquired by Skydance Media will close in the first half of 2025.
Multiple media reports say that Bronfman was forced to withdraw his bid for Paramount Global as he was unable to come up with the required financing.
The withdrawal comes a week after a Bronfman-led investor group offered as much as $6 billion U.S. for Paramount Global, one of the largest film and television producers in the world.
Bronfman’s offer for Paramount Global threatened a previous $8.4 billion U.S. agreement reached by Paramount and Skydance Media in July of this year.
However, Bronfman’s bid relied on the participation of several high-net-worth individuals, some of whom dropped out at the eleventh hour, according to media reports.
Bronfman Jr. is heir to the Seagram alcohol fortune and a member of one of Canada’s wealthiest families.
Paramount Global owns the Paramount film studio, Paramount+ streaming platform, as well as the CBS television network and speciality channels such as Nickelodeon and Comedy Central.
The stock of Paramount Global has declined 23% in the last 12 months and currently trades at $11.33 U.S. per share. Through five years, the stock is down 73%.
