NYC Pension Funds Seek Injunction to Halt $8B Paramount-Skydance Merger
New York City pension funds have filed a lawsuit in Delaware Chancery Court seeking a preliminary injunction to pause the $8 billion merger between Paramount Global and Skydance.
The lawsuit alleges that the deal unfairly favors Shari Redstone, the controlling shareholder of Paramount Global. The plaintiffs claim that Redstone rejected a more lucrative offer from Sony and Apollo Global Management in favor of the Skydance deal, despite protests from other investors.
In a separate development, Vice Chancellor J. Travis Laster of the Delaware Chancery Court has ordered Paramount to turn over its books and records to the state of Rhode Island, which is investigating potential corporate wrongdoing related to the merger.
Paramount has warned investors that an injunction could block or delay the transaction, potentially resulting in substantial costs. The company has also received demand letters from other shareholders alleging similar breaches of fiduciary duty.
The merger requires approval from the Federal Communications Commission, which is investigating allegations of distorted content in a "60 Minutes" interview with Kamala Harris.
To expedite the merger, Paramount is reportedly considering settling a lawsuit filed by former President Donald Trump over the "60 Minutes" segment.