Particle.news
Download on the App Store
4 ARTICLES
·
last mo.

P

A Delaware judge expedited a shareholder lawsuit but declined to block the deal, leaving room for competing bids before the merger's potential closure.

Shari Redstone arrives for the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, U.S., July 9, 2024. REUTERS/Brendan McDermid/File Photo
The logo of Paramount Pictures studios is pictured after the Writers Guild of America (WGA) said it reached a preliminary labor agreement with major studios in Los Angeles, California, U.S., September 24, 2023. REUTERS/David Swanson/File Photo
David Ellison, CEO and founder of Skydance Productions, arrives with his wife Sandra at the premiere of "The Guilt Trip" starring Barbara Streisand and Seth Rogen in Los Angeles December 11, 2012./File Photo
Paramount Global and Skydance logos are seen in this illustration taken December 17, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • A Delaware judge denied a temporary restraining order to halt the $8 billion merger between Paramount Global and Skydance Media but set an accelerated schedule for a shareholder lawsuit.
  • The lawsuit, filed by New York City pension funds, alleges Paramount's board breached fiduciary duties by rejecting a $13.5 billion bid from Project Rise Partners in favor of the Skydance deal.
  • The court ruled Paramount must notify plaintiffs at least five days before the deal's potential closure, allowing them to renew their request to block the merger.
  • The merger, which is subject to Federal Communications Commission approval, could close as early as March 20 but faces an April 7 deadline that may be extended if needed.
  • The judge acknowledged claims that Paramount's controlling shareholder Shari Redstone may have prioritized personal interests over public shareholders, but further evidence is required to substantiate these allegations.