In a vehement defense of its $8 billion merger with Paramount Global, Skydance Media has accused Project Rise Partners (PRP), a rival bidder, of trying to “hijack” the regulatory review process and sabotage the deal with what it claims is an ill-timed and fraudulent counteroffer.
Skydance’s legal team criticized PRP’s efforts in a letter filed with the Federal Communications Commission (FCC) and seen by Deadline, which is currently investigating the deal. They claimed that the investment group’s bid, which was submitted after the 45-day “go-shop” period ended last summer, lacked legitimacy and threatened a legally binding contract that was already in place. All of this occurs as Skydance and Paramount work to complete their merger.
READ MORE: Despite FCC Obstacles, Paramount And Skydance Are Pushing To Complete Their Merger By March 20
In an attempt to compel Paramount’s Board to take into account Project Rise’s tardy—and insincere—bid to buy the business, the lawyers representing Skydance said, “Project Rise is attempting to hijack this Commission proceeding to buy time for litigation to proceed in the Delaware Court of Chancery.” They underlined that PRP’s concerns are unfounded, out of date, and not backed up by evidence or the law. Supported by partners like RedBird Capital and David Ellison’s Skydance, the merger seeks to strengthen Paramount with new funding and innovative talent—a strategy that Skydance claims PRP’s “unfunded and unrealistic proposal” cannot match.
The situation intensified when Skydance claimed to have found “overwhelming evidence” of PRP’s wrongdoing in a separate letter to opposing counsel in a Delaware shareholder action. The business contends that PRP misrepresented its financial support, citing a letter from Goldman Sachs that refutes previous assertions that the firm is advising PRP. Skydance also emphasized PRP’s leadership, pointing out that co-chair Moses Gross lacked expertise in significant public company transactions and that co-chair Daphna Edwards Ziman’s Cinémoi filed for bankruptcy in 2023. The letter further raises doubts about PRP’s authenticity by implying connections to Edgar Bronfman Jr., a previous bidder who retracted his offer during the “go-shop” phase.
READ MORE: In A New Bidding War, Paramount Might Be Sold To The Highest Bidder
There are further obstacles to the merger. New York City pension funds filed a lawsuit against PRP, claiming that their $13.5 billion all-cash offer, which is $5 billion more than Skydance’s, should be taken into consideration, but a Delaware judge recently refused to halt the purchase. Meanwhile, the FCC’s assessment has been clouded politically by President Donald Trump’s $20 billion lawsuit against CBS News over an interview with Kamala Harris and FCC Chair Brendan Carr’s investigation of purported “news distortion.” Although Paramount is still hopeful and plans to close by June 2025, the growing legal and regulatory obstacles point to a difficult path ahead.
For the time being, Skydance is stepping up its efforts, promoting its “fully funded plan” in opposition to what it claims are PRP’s vacuous claims. The stakes for Paramount’s future and its recognizable brands are bigger than ever as the conflict progresses.
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