The merger of Paramount Pictures and Skydance Media is expected to go ahead after Edgar Bronfman Jr. dropped a competing offer.
Bronfman, the executive chairman of streaming service Fubo, informed Paramount’s special committee of directors Monday night that he would not proceed with his bid.
“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 told me.
Bronfman, the former chairman and CEO of Warner Music, made an initial bid of $4.3 billion for Shari Redstone’s National Amusements, Paramount’s controlling shareholder, according to several media reports. He then increased the proposal to $6 billion.
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Last month, Paramount agreed to a merger with Skydance that will pump much-needed capital into a heritage studio that has struggled to adapt to a changing entertainment industry.
Since then, during what is known as a “go shop” phase, a special committee of Paramount’s board has contacted over 50 third parties to see whether they are interested in making offers. Bronfman’s go shop period was prolonged, but it has now ended.
Shari Redstone’s National Amusements has owned more than 75% of Paramount’s Class A voting shares through her late father’s estate, Sumner Redstone. She had fought to keep control of the business that owns CBS, which produced blockbuster films like “Top Gun” and “The Godfather.”
The transaction heralds the arrival of a new power player: Skydance founder David Ellison, son of billionaire Larry Ellison, who built the software business Oracle.
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Skydance, situated in Santa Monica, California, has contributed to numerous major Paramount hits in recent years, including Tom Cruise films like “Top Gun: Maverick” and parts of the “Mission Impossible” franchise.
The planned merger of Paramount and Skydance is valued at approximately $28 billion. The transaction is expected to finalize in September 2025, subject regulatory approval.
Paramount, which began as a distributor in 1914, is one of Hollywood’s oldest studios and has worked on countless films, including “Sunset Boulevard” and “The Godfather,” as well as “Raiders of the Lost Ark” and “Titanic.”
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