In the latest twist in the Paramount Global M&A saga, Skydance Media is alleging the media company breached the terms of their merger agreement by engaging with a rival bid from investors led by billionaire Edgar Bronfman Jr.
Lawyers for David Ellison’s Skydance sent a letter to the special committee established by Paramount to evaluate M&A offers, accusing the committee of breaking the terms of their deal and threating to withdraw its own $8 billion-plus offer, the Wall Street Journal reported.
“Paramount has committed an incurable, material breach of the Transaction Agreement,” Skydance’s letter to the Paramount special committee said, according to the report. Per the Journal, the letter also said, “While Skydance is not currently exercising its right to terminate the Transaction Agreement, we reserve the right to do so in the future.”
Reached by Variety, a rep for Skydance declined to confirm details of the letter. Reps for the Paramount board’s special committee did not respond to a request for comment.
On Wednesday, a Bronfman-led investor group submitted a $6 billion bid — raised from its initial $4.3 billion offer — to acquire National Amusements Inc. and acquire a minority share of Paramount Global’s stock from nonvoting shareholders. In response, the Paramount board’s special committee extended the go-shop period for considering credible bids that rival Skydance’s offer by 15 days, until Sept. 5.
(Pictured above: Skydance Media CEO David Ellison)
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- Source of information and images “variety ““
