Skydance Accuses Paramount of Violating Deal Agreement by Negotiating With Edgar Bronfman Jr.: Report
variety.comTodd Spangler NY Digital Editor 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 Thursday to the special committee established by Paramount to evaluate M&A offers, accusing the committee of breaking the terms of their deal by extending the negotiating window to consider Bronfman’s proffer — 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, reps for Skydance and the Paramount board’s special committee declined to comment.
A spokesperson for Bronfman did not respond to a request for comment. On Wednesday, the Bronfman-led investor group submitted a $6 billion bid — raised from its initial $4.3 billion offer — to acquire National Amusements Inc.
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