Paramount Global has confirmed the withdrawal of a US$6bn acquisition proposal from the Bronfman Consortium, led by former Warner Music chief Edgar Bronfman, Jr, paving the way for a takeover by Skydance Media.

The news came as the global media giant closed its 'Go-Shop' period, as defined in the Transaction Agreement with Skydance Media, for all parties. Over 50 third parties were contacted during the 45-day period to gauge and solicit interest in acquiring Paramount, a process designed to give the company the opportunity to view alternatives to a proposed merger with Skydance.

"We continue to believe that Paramount Global is an extraordinary company, with an unrivaled 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 transaction with Skydance is now expected to close in the first half of 2025, subject to regulatory approvals and other customary closing conditions. The deal values Paramount at about US$28 billion.

"On behalf of the Special Committee we thank Mr. Bronfman and his investor group for their interest and efforts," said Charles E. Phillips, Jr., Chair of the Special Committee. "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."

As reported by various global media outlets, the companies announced in July they had reached a deal that would involve Skydance investing US$8bn into the new company as part of the merger. Skydance would then pay a further $2.4bn to buy National Amusements, the Redstone-owned cinema operator that holds nearly 80% of voting shares in Paramount.

Centerview Partners serves as financial advisor to the Paramount Special Committee and Cravath, Swaine & Moore serves as legal counsel.