From "Peter O'Malley reportedly out as bidder for Dodgers" by Bill Shaikin at the LA Times:
Peter O'Malley has withdrawn his bid to buy the Dodgers, two people familiar with the sale process said Tuesday.
The decision means the O'Malley family will not reclaim the stewardship of the team it owned for nearly half a century, a span during which the Dodgers won all six of their World Series championships. [...]
One of the people familiar with the decision characterized it as strategic and said O'Malley and his family remain interested in helping to restore the pride and prominence of the Dodgers in any way possible. In that 2010 interview, O'Malley said he would be willing to assist new owners during a transition period.
So much for going back to the future, but O'Malley's bid always seemed like a longshot. Wouldn't mind seeing him rejoining the club in some advisory position, but here's guessing the new owner will have plenty of people offering him advice.