:max_bytes(150000):strip_icc()/GettyImages-21503179901-0707da00b1154981a22d910cb511fca7.jpg "Paramount Set for Skydance Takeover After Bronfman Withdraws Bid")
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KEY TAKEAWAYS
- Paramount Global’s special committee said Edgar Bronfman Jr. has withdrawn from bidding for Shari Redstone’s media empire.
- Bronfman’s retreat sets the stage for the entertainment giant to be sold to David Ellison’s Skydance Media.
- The committee said that it had “contacted more than 50 third parties” to see if they were interested in bidding for Paramount.
Paramount Global’s (PARA) special committee said Edgar Bronfman Jr. has withdrawn from bidding for Shari Redstone’s media empire, setting the stage for the entertainment giant to be sold to David Ellison’s Skydance Media.
The special committee handling the twists and turns of the monthslong bidding process for Paramount said that it is closing the door on the company’s “go-shop” period and plans to move forward with the Skydance Media deal.
The committee said that it had “contacted more than 50 third parties” to see if they were interested in bidding for Paramount, whose shares are falling almost 5% in premarket trading Tuesday.
Skydance, Paramount Agreed To $8B Deal in July
Last month, Paramount announced it had agreed to a deal that would see Skydance and private-equity backer RedBird Capital Partners invest over $8 billion, including debt, to acquire controlling shareholder National Amusements and form “New Paramount.” Skydance and Paramount subsequently would merge.
Paramount shares, which were down 23% year-to-date through Monday’s close, are a further 4.7% lower at $10.80 about 30 minutes before the opening bell.