Paramount Global’s stock sank after Edgar Bronfman Jr. abruptly abandoned a $6 billion takeover bid of the media giant amid growing questions about how he would finance the deal.
Paramount Global’s stock sank after Edgar Bronfman Jr. abruptly abandoned a $6 billion takeover bid of the media giant amid growing questions about how he would finance the deal.
Shares of the company, home to Paramount Pictures, CBS and MTV, fell more than 6% in midday trading on Tuesday after Bronfman made a surprise exit from the race — one day before the deadline to submit a final offer.
Bronfman’s bidding group notified the special committee of Paramount’s board of directors late Monday that it would drop out, clearing the way for David Ellison’s Skydance, which reached an $8.4 billion merger agreement with Paramount in July.
Part of that deal included a “go shop” window that allowed Paramount to seek other buyers, which is how Bronfman and his group of investors emerged as a contender.
