It will expire at 11:59 pm ET tonight for any other potential bidders.
Bronfman originally submitted a bid worth $4.3 billion on Monday night.
The updated version includes $1.7 billion to cash out some of Paramounts shareholders.
(L-R) Edgar Bronfman, Shari Redstone and David EllisonGetty Images
The decision to extend came just hours before the midnight deadline.
If it gets that far, Skydance would have the right to counter.
However, the two deals are structurally very different.
If Bronfman somehow emerges the winner, hed owe Skydance a $400 million breakup fee.
Thats a premium to the current share price and stockholders like it.
Gerry Cardinales RedBird Capital is a major investor as well.
Jeff Shell would fire off the combined company under Ellison.
Wall Street has been a bit mystified by what feels like an uphill fight for Bronfman.
After Skydance and Paramount announced their proposed combination in July, most suitors dropped their pursuits.
They have said they will be given the latitude to pursue strategic transactions during this interim period.
