Gabelli’s Fund Files Lawsuit Over Paramount Merger

Billionaire investor Mario Gabelli’s investment fund has taken legal action, filing a class-action lawsuit on behalf of Paramount Global shareholders. They claim that Shari Redstone, the company’s controlling shareholder, received unfair advantages during the $8.4 billion merger with Skydance Media.

The Gabelli Value 25 funds and its affiliates assert that Redstone’s National Amusements (NAI) was compensated with $60 for each Class A Paramount share, while public shareholders only saw a return of $23.

This lawsuit is identified as Harbor Lights Entertainment and names Paramount Global, as well as Redstone and Skydance, as defendants.

A spokesperson for Redstone refrained from commenting, and there was no immediate response from Skydance regarding the ongoing case filed in Delaware.

Gamco expressed its obligation to pursue the lawsuit, highlighting early concerns voiced by the firm about NAI’s financial benefits. “We expected more transparency regarding what NAI was receiving compared to minority shareholders,” noted Christopher Marangi, a co-CIO at Gamco Investors.

He also mentioned that Gamco had to redeem its cash shares during this process.

On August 7, the merger with Skydance was finalized, resulting in the formation of Paramount Skydance. This merger merges Paramount’s extensive distribution network and valuable film library with Skydance’s production and technical resources.

In Paramount’s 2025 proxy statement, Gamco is recognized as the second-largest shareholder, holding 11.7% of the Class A shares.

Marangi criticized Paramount for allegedly ignoring their concerns and failing to protect the voting rights of minority investors.