Bronfman drops out of Paramount bidding; Skydance to claim prize

Billionaire entertainment executive Edgar Bronfman Jr. has bowed out of his long-shot bid to gain control of Paramount Global, clearing the way for David Ellison’s Skydance Media to claim the prize.

The move comes less than a week after Paramount’s special committee of independent directors extended a deadline for the “go-shop” period to review Bronfman’s $6-billion bid.

“Tonight, our bidding group informed the special committee that we will be exiting the go-shop process,” Bronfman said in a statement. “It was a privilege to have the opportunity to participate. We continue to believe that Paramount Global is an extraordinary company, with an unrivaled collection of marquee brands, assets and people.”

It wasn’t immediately clear why Bronfman exited in advance of Paramount’s Sept. 5 deadline to decide who would come away with the beleaguered media company that owns CBS, Comedy Central, Nickelodeon, MTV and the historic Melrose Avenue film studio.

But there were indications that Bronfman’s bid wouldn’t measure up to Skydance Media’s $8.4-billion proposal, which controlling shareholder Shari Redstone and Paramount’s board approved in July.

“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. “We congratulate the Skydance team and thank the special committee and the Redstone family for their engagement during the go-shop process.”

David Ellison’s Skydance Media is backed by Ellison’s father, Larry Ellison, and Redbird Capital Partners.

This is a developing story.