Paramount and Skydance Merger Moves Forward After Competing Bid Withdrawn
NEW YORK — The highly anticipated merger between entertainment powerhouse Paramount and media company Skydance is set to proceed following the withdrawal of a competing offer from Edgar Bronfman Jr.
Bronfman, who currently serves as the executive chairman of a streaming service, notified Paramount’s special committee of directors on Monday night that he would not continue 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,” Bronfman stated.
Initially, Bronfman had made a bid of $4.3 billion for National Amusements, the controlling shareholder of Paramount owned by Shari Redstone. He subsequently increased his offer to $6 billion.
Last month, Paramount agreed to a merger deal with Skydance, which aims to provide crucial financial resources to the historic studio, known for its struggles in the evolving entertainment industry.
During the "go shop" period following the merger announcement, Paramount’s board reached out to over 50 potential buyers to assess additional interest. Although the period was initially extended for Bronfman, it has now closed.
Shari Redstone’s National Amusements has controlled over three-quarters of Paramount’s Class A voting shares through her late father, Sumner Redstone. She has faced numerous challenges in maintaining control of the company, which has produced classic films such as “Top Gun” and “The Godfather.”
This merger also showcases the emergence of a significant player in the entertainment sector, Skydance founder David Ellison, who is the son of billionaire Larry Ellison, founder of Oracle.
Based in Santa Monica, California, Skydance has contributed to major Paramount successes in recent years, including Tom Cruise’s “Top Gun: Maverick” and various entries in the “Mission Impossible” franchise.
The combined entity of Paramount and Skydance is projected to hold a valuation of approximately $28 billion. The merger is anticipated to finalize in September 2025, subject to regulatory approval.
Founded in 1914, Paramount is one of Hollywood’s oldest studios, with a rich history of releasing iconic films, including “Sunset Boulevard,” “The Godfather,” “Raiders of the Lost Ark,” and “Titanic.”
