A Delaware judge on Monday opened the door for the possibility of a renewed war of bids for Paramount Global that could destroy the $ 8 billion media deal to join the Hollywood Skydance Media studio.
At the beginning of last month, New York Public Pension Funds were indicted to block the Skydance Union Agreement whose exclusive terms have prevented Paramount from consider a rival offer worth $ 8.8 billion from the RISE partners’ project, an investment consortium.
On Monday, Delaware Chancellor Kathaleen McCormick requested pension funds for more information – an indication that it is seriously weighing their request for at least blocking the agreement from closing, according to sources informed on the judicial procedure.
Lawyers for Paramount were hopeful that Judge McCormick – who last year fame the $ 56 billion -billion dollars’ Board of Tesla – would rule by the bench and dismiss the Skydance Paramount Agreement to continue, sources said.
“If you are delaying a decision, it’s bad for people who didn’t bring the case,” a source of the lawsuit said. “Paramount probably has real problems in court.”
Judge McCormick has not yet set a date for a new hearing, the court said on Monday.
The biggest question for the judge, according to the University of Pennsylvania Professor of Business Justice Jil Fisch, is whether the mostly unknown project Rise Partners is a legitimate applicant.
“Our original offer had a letter from our Bank Northern Trust verifying finances,” told Daphna Ziman on Monday, which is leading the Rise Consortium project for posting.
The Paramount Special Committee would not meet the group, she said.
Project re -seals the partners presented under the stamp with the judge how he regulated the funding for what would be the $ 8.8 billion merger, said Ziman, who has not publicly disclosed its supporters.
New York City pensions claim that Skydance is buying the Shari Redstone Media legacy of the Stock Control in Paramount with a much higher premium than ordinary shareholders are paying and that ordinary shareholders were left out of the process without a vote.
“Even more boldly,” claims the lawsuit, “Skydance has agreed to pay for the Redstone Central Park apartment and to pay rent for its private plane. The most outrageous, Skydance has agreed to compensate Redstone for any violation of the tribes of trust coming out of the proposed unity, knowing that for herself. “
Plaintiffs said on Monday that they have a paramount whistle that can talk about the sales process that is not properly open as Skydance led by David Ellison, the son of billionaire Oracle David Ellison-try to close the deal, sources said.
The dispute is the latest grief cast in the Union, which has faced Heat from the Trump administration, the Federal Communication Commission of which is investigating charges of political prejudice at CBS News over a “60 minutes” interview with former President Kamala Harris.
On Monday, Judge McCormick asked the parties when FCC and its chairman, Brendan Carr, are expected to rule for the Union. Paramount believes that the earliest agreement, signed in July 2024, can clear FCC is March 18th.
Charles Gasparino reported exclusively last week that the FCC decision could withdraw until summer.
Separately, President Trump has entered into talks of primary mediation about resolving his $ 20 billion lawsuit claiming media prejudice during the election. The result of those mediation talks can affect FCC, sources said.
“This can be death with a thousand cuts,” the source said closely the situation.
Global electricity management of private capital Apollo, who had expressed interest last year in the purchase of paramount, is no longer active following the process, said two sources close to the situation, and may be the only other logical plaintiff.
Edgar Bronfman Jr. He was given the opportunity to bid last summer and withdrew his proposal. He has spoken that he is still interested and may be looking for new supporters, sources said.
The Special Committee, represented by Cravath Law Firm Swaine & Moore, made the issue that the shareholders were worse if Skydance would leave as there is no true alternative bidder, Ziman said.
Cravath did not return the calls.
“I think the judge is weighing how offers affect shareholders,” Ziman said. “Who are police, firefighters and teachers who voted for President Trump.”
The plaintiffs are the fire of the city of New York, the police, teachers and pensions of the Education Board.
“Why would Trump [if he knew] Want Larry Ellison to get money from the pockets of those diligent shareholders? “She told the post.
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