The investor consortium led by former Warner Music boss Edgar Bronfman Jr. has withdrawn its proposal to acquire Paramount Global.
This effectively ends the “go-shop” period for Paramount to explore alternative offers, which means that the company is moving ahead with its planned merger with Skydance Media.
About a week ago, multiple news outlets, including The Wall Street Journal, reported that Bronfman submitted a $4.3 billion offer to acquire Paramount. The offer included a $2.4 billion payment to Shari Redstone’s National Amusements, which controls Paramount, and a $1.5 billion injection into the company’s balance sheet to reduce debt and maintain investment-grade status, Deadline reported.
Bronfman’s offer sought to derail Paramount’s planned merger with Skydance, which was first announced in July. The $8 billion transaction would value the combined entity at about $28 billion.
“Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our Special Committee continues to believe that the transaction we have agreed with Skydance delivers immediate value.”
Charles E. Phillips, Jr., Paramount Global
The go-shop period allowed the company to consider offers from other interested parties. The Special Committee of the Board of Directors of Paramount contacted over 50 potential suitors, Paramount said.
However, Paramount on Monday (August 26) announced in a statement that the Special Committee received Bronfman’s withdrawal notice.
“On behalf of the Special Committee we thank Mr. Bronfman and his investor group for their interest and efforts,” said Charles E. Phillips, Jr., Chair of the Special Committee.
“Having thoroughly explored actionable opportunities for Paramount over nearly eight months, our Special Committee continues to believe that the transaction we have agreed with Skydance delivers immediate value and the potential for continued participation in value creation in a rapidly evolving industry landscape,” Phillips added.
The Skydance transaction, expected to close in the first half of 2025, will see Skydance acquiring Paramount’s parent company, National Amusements. Skydance will then merge with Paramount to create what’s being called “New Paramount.”
Paramount Global is a global media and entertainment company with a rich history that dates back to 1912 and has long been a major player in the industry. Its businesses include Paramount Pictures, Paramount Television, MTV Entertainment Group, CBS Entertainment, Nickelodeon, and streaming services Paramount+ and Pluto TV.
The merger with Skydance development comes amid a period of change for Paramount Global. Earlier this year, Paramount announced that Bob Bakish stepped down as CEO of the company. He has been replaced by a trio of executives forming a new “Office of the CEO.” The trio includes CBS CEO George Cheeks, Showtime/MTV Entertainment Studios and Paramount Media Networks CEO Chris McCarthy, and Paramount Pictures CEO Brian Robbins.
Music Business Worldwide