Skydance Media Accuses Paramount of Breach in Acquisition Deal

Skydance Media has raised concerns regarding a potential breach of contract by Paramount Global’s special committee of directors. According to a report from the Wall Street Journal, Skydance claims that the committee extended the timeframe for engaging with other bidders, which could jeopardize its planned acquisition. This development follows a revised $6 billion bid from media executive Edgar Bronfman Jr. for Paramount's controlling shareholder, National Amusements, and a minority stake in the company. Bronfman’s enhanced offer poses a significant challenge to Skydance Media, led by tech entrepreneur David Ellison. In response to the unfolding situation, shares of Paramount, which oversees Paramount Pictures and CBS, fell by 1.7% in after-hours trading. Skydance’s legal representatives indicated that while they are not currently terminating the transaction agreement, they reserve the right to do so in the future, highlighting the seriousness of their claims. The special board committee at Paramount had previously extended the "go-shop" period deadline from August 21 to September 5, allowing Bronfman’s consortium additional time to finalize their offer. If Paramount accepts a competing bid that Skydance does not match, the company would be liable for a $400 million break-up fee, further complicating the acquisition landscape. As the situation develops, both Paramount’s special committee and Bronfman’s representatives have refrained from commenting, while Skydance Media has not yet provided a response.