By Dawn Chmielowski and Anirban Sen
(Reuters) – Media mogul Edgar Bronfman Jr. on Monday dropped out of the race to buy Paramount Global, paving the way for Skydance Media to take control of Shari Redstone’s media empire.
In a statement, Bronfman said his bidding group informed Paramount’s special committee Monday evening of its decision to withdraw from the process.
“We continue to believe that Paramount Global is an extraordinary company, with an unparalleled combination of brands, assets and people,” Bronfman said in a statement. “While there are differences, we believe that everyone involved in the sale process is united in the belief that Paramount’s best days are ahead.”
A source close to Bronfman told Reuters that his offer relied on the participation of high-net-worth individuals who felt uncomfortable sharing their personal financial information with Paramount’s special committee and its advisers.
Last week, a group of investors led by Bronfman proposed acquiring Paramount in a $6 billion bid, in which the company would buy out the media company’s controlling shareholder, National Amusements.
Bronfman was unable to come up with the equity financing package required for his bid, according to another source familiar with the matter. Some of Bronfman’s key partners in the deal pulled out at the last minute, the source added, dashing any hopes he had of mounting a serious challenge to Skydance’s bid.
The source said Bronfman was required to show equity financing commitments of about $6.3 billion for the takeover offer, but did not reach that number, without specifying the exact amount Bronfman was able to raise.
The offer by Paramount — home to the eponymous movie studio, the CBS broadcast network and cable networks such as Nickelodeon and Comedy Central — had threatened to derail an $8.4 billion deal that Paramount and Skydance reached in July.
Paramount spokespeople could not immediately be reached for comment. Skydance declined to comment.