Skydance’s takeover of Paramount is set to complete next year after a last-minute rival bid was withdrawn.
Following months of speculation, talks and a temporary break-down in negotiations, David Ellison’s Skydance last month secured a deal to take control of the iconic studio.
Terms of the deal, under which Skydance will acquire Paramount majority shareholder National Amusements before merging with the studio to create a “a next-generation media and technology leader” with a potential combined value of $28bn, included a ‘go-shop’ period in which Paramount was entitled to seek better offers elsewhere.
Last week a rival bid was tabled by former Warner Music CEO Edgar Bronfman Jr. however this has now been withdrawn, clearing the way for the Skydance deal to conclude.
Charles E. Phillips, Jr., Chair of a special committee of the Paramount board overseeing the sale, said: “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.”
The transaction is now expected to close in the first half of 2025, subject to regulatory approvals.