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Paramount stock ( PARA ) fell over 7% on Tuesday after the company announced the official end of its "go-shop" period and billionaire Edgar Bronfman Jr. dropped out of the race to purchase Paramount late Monday.

Paramount's announcement all but confirms that Skydance Media will be the next owner of the company, ending years of deal speculation surrounding the media giant controlled by Shari Redstone through her family's holding company, National Amusements (NAI).

"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," Charles Phillips, chair of Paramount's special committee, said in a statement.

Bronfman, heir to the Seagram spirits fortune and current executive chairman at FuboTV ( FUBO ), submitted a last-minute bid earlier this month. At the time, the proposed $6 billion takeover of National Amusements threatened to derail the roughly $8 billion agreement the company reached with Skydance just one month prior.

According to multiple reports , Bronfman had difficulty securing the financing for the deal, which included investors like Fortress and BC Partners Credit. This difficulty led to Bronfman's early withdrawal from the bid process.

"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.

The Skydance transaction is expected to close in the first half of 2025, subject to regulatory approval.

Earlier this month, Paramount reported a sharper slowdown than analysts expected in its linear TV business as the company took a nearly $6 billion write-down on the value of its cable unit.

At the same time, the media giant announced plans to lay off 15% of its US workforce after eliminating about 800 positions in February. The layoffs are expected to be completed by the end of the year.

Skydance, which will be valued at $4.75 billion following the all-stock deal's completion, said it would inject $6 billion in cash into Paramount, with $1.5 billion going directly into its debt-ridden balance sheet.

Skydance CEO David Ellison will become chairman and CEO of the combined company, while former NBCUniversal executive Jeff Shell, who was ousted last year over what NBC parent Comcast ( CMCSA ) deemed an "inappropriate relationship" with a female employee, will serve as president.

Last month, the new leadership team laid out their strategic vision for Paramount . This includes $2 billion in cost cuts, with $500 million already underway.

Alexandra Canal @allie_canal , LinkedIn,