Edgar Bronfman Jr. unexpectedly withdraws his surprise takeover offer for Paramount, paving the way for the planned merger with Skydance Media. The decision marks the end of an era in the media landscape.
In a surprising twist, Edgar Bronfman Jr. has withdrawn his takeover offer for Paramount Global. Variety reported, the former Warner Music boss had recently submitted a bid of six billion dollars to prevent the planned merger between Paramount and Skydance Media and to get his own way. By backing out, Bronfman is now paving the way for the originally intended transaction. Charles E. Phillips Jr., Chairman of the Special Committee of Paramount Global, expressed his gratitude for Bronfman’s interest and efforts. He emphasized that after careful consideration, the company remains convinced that the agreement with Skydance offers the greatest added value.
The sale process of Paramount Global was complex from the start. More than 50 potential interested parties were contacted over eight months. The Skydance-Paramount merger, which values the combined company at 28 billion dollars, envisages an investment of eight billion dollars by Skydance. An additional 2.4 billion dollars will be spent on the acquisition of National Amusements, the holding company of the Redstone family.
The completion of this transaction marks the end of an era. The Redstone family, which has controlled Paramount since 1994, will largely withdraw from the media and entertainment business. Similar to the Murdochs, the Redstones were one of the last media mogul families to exercise control over some of the largest studios, networks and publishing houses in the US through preferred stock. The urgency of the transaction was underscored by Paramount Global’s recent quarterly figures.
The company had to revise the value of its linear cable network division downwards by almost six billion dollars. The completion of the merger between Paramount and Skydance is expected in the first half of 2025, subject to the necessary regulatory approvals. This transaction could permanently change the media landscape and clearly shows the consolidation trends in the industry.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.
