Paramount-Skydance Deal Hit With Legal Salvo From Major Shareholder

Paramount Global may soon have to turn over records related to a bid by Skydance to take control of the company.

Behind Skydance's Case for Paramount as a Growth Story

In a much-expected revolt over treatment of minority investors, billionaire money manager Mario Gabelli on Friday filed a lawsuit in Delaware Chancery Court for access to Paramount’s books. The legal move could be a precursor to a lawsuit challenging the potential deal that some investors believe enriches controlling shareholder Shari Redstone at their expense.

As part of the merger, class A shareholders will receive $23 per share, while class B shareholders will receive $15 per share.

Gabelli seeks information related to whether Redstone, who owns both voting and nonvoting shares, will get more money for her Class B shares than others, he told Puck . “I got to represent all investors here,” he said. Gabelli expressed that doesn’t have an issue with Redstone cashing out her class A shares at a premium

Paramount Has Until Aug. 21 to Mull Other Takeover Bids During "Go-Shop" Window

Multiple law firms, including Bleichmar Fonti & Auld LLP, have announced investigations into whether the board of directors for Paramount Global and National Amusements may have breached their fiduciary duties to minority investors.

The lawsuit from Gabelli, the largest holder of nonvoting shares, follows a Paramount investor in April filing a similar action to force the company to turn over records related to talks with David Ellison’s Skydance. The Employees’ Retirement System of Rhode Island alleged that Redstone has “conflicting interests” undermining the company’s motives to find a better deal than the one offered by Skydance.

Could Skydance-Paramount Deal Trigger New NFL Talks With CBS? Roger Goodell Doesn't Dismiss It