Prominent money manager Mario Gabelli, one of Paramount Global's largest shareholders, has urged the Federal Communications Commission to halt its review of media giant Paramount Global's transfer of broadcast licenses in its $8 billion merger with Skydance. requested the association.
Gabelli requested a delay to investigate “possible fiduciary and/or federal securities violations” against Paramount's minority shareholders, according to a letter Gabelli wrote to the agency made public Tuesday.
His investment firm, Gabelli Value, owns about 13% of Paramount's Class A common stock and about 900,000 Class B shares, making it the second largest Class A shareholder after Shari Redstone and National Amusements.
“Gabelli Value is committed to providing the following information until Gabelli Value completes its investigation and determines whether to file suit against Paramount’s Board of Directors, NAI, and/or Skydance for breach of fiduciary duty (or aiding and abetting). We respectfully ask the Commission to defer resolution of the application.'' Whether the transaction violates Delaware law and/or federal law. We can discuss this matter at your convenience,” the letter states.
Mr. Gabelli filed a request with the FCC on Nov. 8, four days after Paramount released a 699-page S-4 prospectus to the Securities and Exchange Commission regarding the Skydance deal, offering management of assets including CBS. will be transferred to an independent studio owned by the company. Written by David Ellison, Successor of Technology.
However, Gabelli's letter to the FCC alleges that Paramount's “proxy statement does not provide adequate disclosure regarding the board's process for approving the merger or the fairness of the merger consideration.”
“Importantly, it does not provide stakeholders with sufficient information to determine whether consideration that should be paid to shareholders is being diverted to them. [Shari Redstone’s] NAI acquired controlling interest in the company. ”
Skydance and Paramount declined to comment.
Redstone, the daughter of the late media mogul Sumner Redstone, is expected to walk away with a windfall of nearly $2 billion as a controlling stake in Paramount.
Gabelli filed a request for more information last week. told TheWrap: “We want to give our clients the option to continue owning voting stock. Why should they be squeezed out?”
“Secondly, are they worried that I'll discover a bunch of numbers that show they should get more money because they're getting more money? “I don’t know,” he said.
The complex deal involves Paramount acquiring and then merging with smaller Skydance.
Class B Commons could sell some of its Paramount shares for $15, a premium to the current price of $11.45.
As the Post previously reported, controlling Class A shareholders will receive $23 or the chance to convert their shares into Class B common stock.
The transaction does not require a shareholder vote and is expected to close in the first half of 2025.
