Last Monday, media entrepreneur Edgar Bronfman Jr. dropped his last-minute bid to acquire Paramount after failing to secure complete financial support for his offer. Paramount’s special committee, which is managing the sale process, demanded specific financial details from Bronfman, which he could not provide.
It is reported that Bronfman had secured as much as $5 billion out of the estimated $6 billion required to win the bidding war against David Ellison’s Skydance Media. It was also reported that some of Bronfman’s investors were reluctant to disclose confidential details on their own financial holdings, which may have been required as part of the due diligence Paramount was seeking.
This clears the way for Skydance to complete its merger with Paramount, which is expected to close during the first six months of 2025. Under the agreement, Skydance and RedBird Capital will own two-thirds of Paramount, with the remaining one-third held by the company’s current class B shareholders. David Ellison is expected to take over as head of the company and pursue a strategy to boost its digital presence.