Edgar Bronfman Jr. retracting Paramount bid clears the way for Skydance merger

The merger between Paramount and Skydance, the media company, will proceed following Edgar Bronfman Jr.’s decision to withdraw his competitive offer. Bronfman, the executive chairman of Fubo streaming service, informed Paramount’s directors’ special committee that he would not move forward with his bid, emphasizing his belief in Paramount’s promising future.

Initially, Bronfman had offered $4.3 billion for National Amusements, owned by Shari Redstone, which controls Paramount. Despite increasing the bid to $6 billion, Paramount decided to move forward with a merger with Skydance to infuse much-needed funds into the struggling studio.

During the “go shop” period, Paramount’s board contacted over 50 parties to explore potential offers. This period was extended for Bronfman but has now concluded. Shari Redstone’s National Amusements, owning the majority of Paramount’s Class A voting shares, has been working to maintain control of the company that includes CBS and successful films like “The Godfather” and “Top Gun.”

The merger signifies the emergence of a new influential figure in the industry, David Ellison, the founder of Skydance and son of Oracle’s billionaire, Larry Ellison. Skydance, known for producing Paramount hits like “Mission Impossible” installments and Tom Cruise films, is based in Santa Monica, California.

The combined value of Paramount and Skydance is estimated at $28 billion, with the completion of the deal anticipated in September 2025, subject to regulatory approvals. Established in 1914, Paramount is among Hollywood’s oldest studios, having played a significant role in distributing iconic films such as “Titanic,” “Sunset Boulevard,” “The Godfather,” and “Raiders of the Lost Ark.”