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 $6 billion 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 proposal, 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, Bronfman and the Paramount board’s special committee declined to comment. On Wednesday, the Bronfman-led investor group submitted a $6 billion bid — hiked from its initial $4.
3 billion offer — to acquire Shari Redstone’s National Amusements Inc. and also buy 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 bids that credibly rival Skydance’s offer by 15 days, unt.