The dizzying bidding war for Paramount Global (NASDAQ:PARA) has taken yet another turn with media industry stalwart Edgar Bronfman Jr. withdrawing from the race to acquire the multinational entertainment empire.
Bronfman Jr., who acted as chief executive of Warner Music Group from 2004 until 2011, said in a statement: “It was a privilege to have the opportunity to participate (in the bidding process).
“We continue to believe that Paramount Global (NASDAQ:PARA) is an extraordinary company, with an unrivalled collection of marque brands, assets and people.
“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 initially offered $4.3 billion for National Amusements, Paramount’s controlling shareholder, but submitted a revised offer of $6 billion last week.
Bronfman Jr.’s gracious exit leaves the path clear for Paramount to combine with David Ellison’s film studio Skydance Media.
Skydance’s recent co-productions include Transformers: Rise of the Beasts, Top Gun: Maverick and Mission: Impossible – Dead Reckoning Part One.
Prior to entering exclusive merger talks with Skydance in April, Paramount Global garnered significant takeover interest from film producer Byron Allen and private equity firm Apollo Global Management (NYSE:APO).
Skydance has agreed to invest more than $8 billion into Paramount Global.
The first port of call could be assessing the future of Paramount’s cable business, which took a $6 billion goodwill impairment hit in the second quarter.
Paramount Global comprises legendary film studio Paramount Pictures, CBS, MTV, Paramount+ streaming service, Nickelodeon, Showtime and many other global media assets.