Paramount Global for sale latest - Variety: Judge Declines to Block Paramount-Skydance Merger, but Accelerates Investor Suit

Story from Variety:

A Delaware judge on Thursday declined to issue an order to temporarily halt the merger between Paramount Global and Skydance Media.

But in the ruling, Chancellor Kathaleen McCormick agreed to set a “break-neck pace” for an investor suit that seeks to block the deal in favor of a competing bid from Project Rise Partners.

A group of New York City pension funds filed the suit last month, arguing that Paramount Global had failed to get maximum value by refusing to consider the $13.5 billion bid from Project Rise, which was first reported by Variety. The funds argued that Paramount Global controlling owner Shari Redstone opted for the Skydance deal because it benefits her at the expense of minority shareholders.

The funds sought a temporary restraining order that would prevent the Skydance deal from going through while the suit is pending. Paramount has argued that the offer came in after the close of the “go-shop” window, and that it is contractually bound to stick with Skydance.

In her ruling on Thursday, McCormick declined to issue a TRO, but did set an accelerated schedule that would allow for a ruling on an injunction by April 7.

“This is a break-neck pace but doable,” the judge wrote. She reasoned that the pension funds had shown sufficient potential harm to warrant an expedited schedule, but not enough to get a TRO.

A rep for law firm Grant & Eisenhofer, which is representing the New York City pension funds in the case, said in a statement: “We are pleased with the Chancellor’s decision.” Paramount and Skydance declined to comment on the ruling. Reps for Project Rise Partners and the Paramount board’s special committee did not respond to requests for comment.

It is not clear when the $8 billion Skydance deal will close, as it must still get approval from the Federal Communications Commission. The current end date in the merger agreement is April 7, but that deadline could be extended assuming the FCC has yet to approve the deal.

McCormick asked Paramount to give the plaintiffs up to five days’ notice if it appears the deal will close before then, so that they can renew their request for a temporary restraining order.

The judge ordered the parties to confer on a briefing schedule. “Perhaps the parties can negotiate a more civilized schedule in the event they learn that the FCC process is not likely to conclude by April 7,” she wrote.

Shares of Paramount Global ticked up 2.2% Thursday amid a broader market decline.

Separately Thursday, Paramount and CBS filed motions to dismiss President Trump’s lawsuit over a “60 Minutes” interview last year, calling the suit an “affront to the First Amendment.”

The investors in the Project Rise consortium include Daphna Edwards Ziman, president and co-chairman of film and lifestyle TV network Cinémoi, and Moses Gross, founder and CEO of real estate company ANM Group. Gross is the CEO of Malka Equities, the umbrella company that signed a $10 billion commitment on behalf of the investors.