Bronfman stepped down due to insufficient funding, paving the way for Paramount (PARA.US) and Skydance to merge.

After billionaire Edgar Bronfman Jr. pulled out of the bidding process on Monday, paving the way for Paramount to merge with Skydance, insiders said the financier had been on track to close the deal by Tuesday, but the deadline was pushed up by one day to give the special committee and its financial adviser Centerview Partners enough time to conduct due diligence on the bid.

The special committee must decide by next Wednesday whether Bronfman’s offer is superior to the existing merger agreement with Skydance Media, led by David Ellison. If so, Skydance will have four business days to match the offer.

The development ends a months-long, bumpy process for Paramount, which has been under the control of Shari Redstone’s National Amusements since 2013.

Just a week ago, Bronfman made his first bid for National Amusements, the controlling shareholder of Paramount, offering $4.3 billion for the company, including a minority stake in Paramount. His consortium included Fortress Investment Group and the credit arm of BC Partners, as well as a group of high-net-worth individuals.

Some potential bidders have recently withdrawn from the bidding process, insiders said, fearing that details of the financing would be made public. Others have dropped out because of the tight deadline for providing financial information, insiders said.

Insiders said Bronfman had planned to raise his offer to about $6 billion but that the amount raised by Monday was about $5 billion, after some potential bidders had withdrawn. Bronfman decided to pull out of the bidding process, insiders said, because his consortium was unable to provide the special committee with the necessary documents in time for review.

Insiders said Bronfman’s initial bid was in line with Skydance’s offer.

With Bronfman’s exit, the way is clear for Skydance to merge with Paramount. The special committee said Monday night that the “go shop” period had ended.

The deal is expected to close in the first half of 2025, pending regulatory approval.

Paramount shares fell more than 7 percent by Tuesday’s close, extending their losses for the year to 28 percent.