Long-time media executive Edgar Bronfman Jr. - currently chair of FuboTV - has dropped out of the running to buy the Paramount Global broadcast heavyweight.
Bronfman, who submitted a bid of reportedly around $4.3 billion earlier this month, has now confirmed that his bidding group has informed Paramount that it will not be proceeding with its submission.
In a statement, Bronfman has said: “We continue to believe that Paramount Global is an extraordinary company, with an unrivaled collection of marquee 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.”
Now, through this withdrawal, the path is now clear for the agreement in place between National Amusements (which holds a controlling stake of 77% in Paramount) and the Skydance Media firm. Paramount has now said that deal is expected to close in the first half of 2025.
It has now been reported (by Reuters, citing a source familiar with the matter) that Bronfman could not come up with the equity financing necessary to complete a deal, with potential partners dropping out at the last minute.
While the deal between National Amusements (run by Shari Redstone) and Skydance was finalized last month, it did contain a 45-day additional period from the date of signing in which Paramount was able to look for and assess other offers.
However, the Paramount special committee overseeing the sale has now returned to that offer, over other possibilities.
Charles Phillips Jr., chair of that special committee, has commented: “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.”
Media assets owned by Paramount Global include US network CBS, the UK’s Channel 5 and Network 10 in Australia, and the Paramount+ streaming service.
From a sports point of view, CBS holds rights to several major properties such as European club soccer’s UEFA Champions League, American football’s NFL, PGA Tour golf, and top-tier college sports. Earlier this year, it aired the most-watched NFL Super Bowl in history.
The Paramount-Skydance deal is expected to see David Ellison, Skydance’s founder and chief executive, come in as chair and CEO at the New Paramount vehicle.
The deal will see National Amusements being sold to Skydance for $2.4 billion after the latter firm merges with Paramount for $8 billion.
The RedBird Capital Partners investment firm has been backing that agreement.
Paramount Global’s latest set of quarterly earnings saw revenue rise by 5% to $7.69 billion, and operating losses only come to $417 million. That number was $1.23 billion a year ago.
The conglomerate was initially formed by the merger of CBS with Viacom in 2019. Redstone has been exploring a sale of Paramount since 2023 amid ongoing struggles including falling revenues and growing costs that have kept the conglomerate and its constituent businesses from profitability.
