Investors Call Skydance Deal for Paramount ‘Suboptimal’ and Warn of Lawsuits

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Majority owner Shari Redstone is “only looking out to maximize the value of Shari Redstone” says one large shareholder, who says the board needs to also consider Apollo Global’s bid

Skydance Media CEO David Ellison and Paramount Executive Chair Shari Redstone, with (center) Apollo Global Management CEO Marc Rowan
Skydance Media CEO David Ellison and Paramount Non-Executive Chairwoman Shari Redstone, with (center) Apollo Global Management CEO Marc Rowan (Chris Smith/TheWrap)

As Paramount and Skydance inch closer towards a deal that would give David Ellison’s media company control through Shari Redstone and National Amusements’ stake, shareholders are expressing concern that a deal could decrease their ownership stakes and close off better options for a sale.

For a deal to go through, it must win approval from Paramount’s special committee, which was formed in January to balance competing interests in the different companies. But the committee faces the difficult challenge of striking a balance between a deal that is in line with the interests of Redstone — Paramount’s majority shareholder through her stake in National Amusements — while upholding its fiduciary responsibility to the rest of its shareholders, some of whom argue that Apollo Global Management’s competing bid is being unfairly ignored.

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