Gabelli Demands Paramount Hand Over Files in Skydance Deal Dispute
Mario Gabelli seeks transparency from Paramount regarding its merger with Skydance Media to protect minority shareholders’ interests
Gabelli, Paramount, Skydance, Shari Redstone, Delaware, Merger
Wilmington: So, here’s the scoop. Mario Gabelli, a big-time money manager, is pushing for Paramount Global to hand over some files. He wants to dig into the details of their merger with Skydance Media. Gabelli’s got about 12% of Paramount’s voting shares, and he’s not happy with how things are looking.
He’s worried that Shari Redstone, the controlling stockholder, might be getting a sweet deal that could hurt other shareholders. Gabelli claims Paramount isn’t being transparent about how much Redstone stands to gain from the sale of her company, National Amusements Inc.
In a recent court filing, he pointed out that Skydance is set to buy a controlling stake in Paramount for a hefty premium. He’s concerned this could siphon off value from other shareholders. Gabelli’s been trying to get these documents for a while, but he says Paramount is moving at a snail’s pace.
To get these internal files, shareholders like Gabelli need to show they have a good reason. This kind of request is usually a precursor to a lawsuit, so it’s serious business. Experts think Gabelli is trying to figure out if Redstone is getting an unfair advantage through this deal.
Paramount and Redstone’s team haven’t commented on the situation yet. The whole mess started when Paramount agreed to merge with Skydance back in July. David Ellison, the producer behind Skydance, is set to take over as CEO of Paramount.
There’s a lot of money on the table, with over $8 billion being invested by the Ellison family and RedBird Capital Partners. This includes cash to pay down Paramount’s debt and buy shares. Gabelli’s filing even mentions a $180 million severance package for Redstone, which he thinks could be taking away from what shareholders should get.
Gabelli’s also asked the FCC to hold off on approving the deal until he can finish looking into possible insider wrongdoing. It’s a tangled web, and it’s caught the attention of regulators, too. Even a Latino-owned media company has raised concerns about Redstone’s potential payout.
So, it looks like this deal is going to be under the microscope for a while. Gabelli’s not backing down, and it’ll be interesting to see how this all plays out.
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