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The drawn-out Skydance and Paramount PARA+0.32% merger is all but certain to happen after Edgar Bronfman Jr. dropped his last-minute bid for Paramount on Monday evening.
Skydance and Paramount PARA+0.32% reached an agreement in July for an $8 billion merger, in which Skydance, led by David Ellison, would acquire the owner of MTV and CBS. But the deal had a “go-shop” period that allowed Sheri Redstone’s Paramount to consider other offers.
Bronfman, a business magnate and media executive from the family behind liquor empire Seagram Co., scraped together a last-minute bid for $4.3 billion and then upped that offer to $6 billion last week.
Paramount extended its “go-shop” period to consider the offer, but on Monday Bronfman decided to abandon the deal.
“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 said in a statement about his decision to rescind his bid, according to The New York Times. “We congratulate the Skydance team and thank the special committee and the Redstone family for their engagement during the go-shop process.”
The Times reported that some involved in the Paramount deal didn’t believe Bronfman would be able to secure the money he promised. Paramount said it had contacted dozens of potential bidders during the go-shop period.
The extended negotiations between Paramount and Skydance seemed to be finally concluding until Bronfman made an offer.
Bronfman served as CEO of Warner Music Group WMG+4.68% from 2004 to 2011, helming the company during its $3.3 billion sale to Access Industries in May 2011.