Media veteran Edgar Bronfman Jr on Monday withdrew from the race for Paramount Global, clearing the way for Skydance Media to take control of Shari Redstone’s media empire and ending one of the most chaotic media bidding wars in recent history.

In a statement, Bronfman said his bidding group had informed Paramount’s special committee on Monday evening of its decision to drop out of the process.

“We continue to believe that Paramount Global is an extraordinary company, with an unrivalled collection of marquee brands, assets and people,” Bronfman said in a statement. “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.”

The special committee of Paramount’s board said in a statement that it had concluded the “go-shop” period, in which it contacted more than 50 parties to evaluate their interest in acquiring the media company. The company expects the deal with Skydance to close in the first half of 2025, pending regulatory approval, it said.

Paramount class B shares were down 5.2 per cent at $10.75 in premarket trading on Tuesday.

Bronfman was unable to come up with the equity financing package required for his bid, said a source familiar with the matter. The source added that a few of Bronfman’s key equity partners on the deal dropped out at the eleventh hour, scuttling any hope he had of mounting a serious challenge to the Skydance bid.

Last week, a Bronfman-led investor group had proposed to take control of Paramount through a $6 billion bid, in which it would buy the media firm’s controlling shareholder, National Amusements.

Reuters