A Delaware judge has cracked open the door to a potential bidding war for Paramount Global, casting uncertainty over the media conglomerate’s $8 billion merger with Hollywood’s Skydance Media. On Monday, Delaware Chancellor Kathaleen McCormick requested additional information from New York City’s public pension funds, which filed a lawsuit last month to block the deal, signaling she may be considering a temporary halt to its closure—a move that could invite rival offers and upend the agreement according to a report from The New York Post.
The pension funds, representing city firefighters, police officers, and teachers, allege that the Skydance merger unfairly prioritizes media heiress Shari Redstone’s controlling stake in Paramount, paying her a premium while sidelining common shareholders without a vote. They claim a rival bid from Project Rise Partners, an investment consortium led by Daphna Ziman, offers $8.8 billion—$800 million more than Skydance’s deal—but was ignored due to the merger’s exclusive terms. “Our original offer had a letter from Northern Trust verifying the financials,” Ziman told reporters, adding that Paramount’s Special Committee refused to meet with her group. Project Rise Partners has filed details of its financing under seal with the court, though Ziman has not publicly disclosed her backers.
Chancellor McCormick’s request for more information has fueled speculation that she is open to pausing the Skydance deal, which Paramount hoped would proceed without delay. The judge, who last year famously struck down Elon Musk’s $56 billion Tesla pay package, did not set a date for a new hearing, leaving stakeholders in limbo.
The lawsuit also accuses Skydance of offering Redstone lavish perks, including payments for her Central Park apartment and private jet lease, as well as indemnifying her against fiduciary duty claims tied to the merger. These allegations paint a picture of a deal skewed to benefit Redstone at the expense of other investors, according to the plaintiffs, who claim to have a whistleblower ready to testify about flaws in the sale process.
Adding to Paramount’s woes, the merger faces scrutiny from the Federal Communications Commission (FCC). Judge McCormick inquired about the FCC’s timeline during Monday’s proceedings, with Paramount estimating the earliest approval could come by March 18—though some sources suggest the decision might drag into the summer. The FCC review coincides with separate mediation talks between Paramount and President Trump over his $20 billion lawsuit alleging media bias during the election, a factor that could influence the regulatory outcome.
As the legal battle unfolds, other potential suitors like Apollo Global Management have reportedly stepped back, while Edgar Bronfman Jr., who withdrew a bid last summer, is rumored to be seeking new backers. For now, Paramount’s fate hangs in the balance, with McCormick’s next move potentially reshaping the media landscape.
Please follow us on Facebook and X for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help. You can find Luke on X HERE.