Music executive and streaming service Fubo chairman Edgar Bronfman Jr is withdrawing a 6 billion dollar bid for the merger between entertainment giant Paramount and media company Skydance.

This comes after the former Warner Music Chief disclosed to Paramount’s special committee of directors on Monday the 26th of August 2024 that he would not proceed with the multi-billion dollar bid.

Speaking with the special committee of directors on Monday night, he said;

“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,” 

According to multiple media reports, Edgar Bronfman Jr had initially offered $4.3 billion for Shari Redstone’s National Amusements, the controlling shareholder of Paramount. He later offered 6 billion dollars for the bid.

To inject desperately needed cash into a legacy studio that has struggled to adapt to a shifting entertainment landscape, Paramount agreed last month to a merger deal with Skydance.

Since then, during what’s known as a “go shop” period, a special committee of Paramount’s board had reached out to more than 50 third parties to determine whether they were interested in making offers. The go shop period was extended for Bronfman but has now closed.

Through the estate of her late father, Sumner Redstone, Shari Redstone’s National Amusements has owned more than three-quarters of Paramount’s Class A voting shares. To maintain control of the company that owns CBS, which is behind blockbuster films such as “Top Gun” and “The Godfather”, she had earlier engaged in legal battles.

The deal signals the rise of a new power player, Skydance founder David Ellison, the son of billionaire Larry Ellison, who founded the software company Oracle.

Based in Santa Monica, California, Skydance has helped produce some major Paramount hits in recent years, including Tom Cruise films like “Top Gun: Maverick” and instalments of the “Mission Impossible” series.

Paramount and Skydance’s proposed combined company is valued at around $28 billion. Pending regulatory approval, the deal is expected to finalize in September 2025.

Founded in 1914 as a distributor, Paramount is one of Hollywood’s oldest studios and has had a hand in releasing numerous films — from “Sunset Boulevard” and “The Godfather,” to “Raiders of the Lost Ark” and “Titanic.”