The future of Network 10 in Australia along with streaming operation Paramount + is once again uncertain as a proposed $8 billion (A$12.99 billion) merger between their parent company Paramount Global and the David Ellison-led Skydance Media is being challenged in a US court.
Paramount Global has reportedly already written down the value of its Australian TV licences and secured local regulatory approvals by the ACCC for its proposed merger. In a filing with the US Securities and Exchange Commission, Paramount disclosed that it had reduced the value of its Australian broadcast licences by US$8 million (A$12.7 million) to their “estimated fair value” of US$13 million (A$20.7 million), reported Capital Brief.
However, the deal which was reached after much wrangling between the two parties last year, is now facing the prospect of a renewed bidding war and may be overturned if a Delaware judge orders one.
Last month, New York City’s public pension funds sued to block the Skydance merger agreement, whose exclusive terms have prevented Paramount from considering a rival bid claiming to be worth $8.8 billion (A$14.04 billion) from Project Rise Partners, an investment consortium, reported the New York Post.
Delaware Chancellor Kathaleen McCormick has now asked the pension funds for more information about their proposal, indicating that that she is seriously considering their request.
“Our original offer had a letter from our bank Northern Trust verifying the financials,” Daphna Ziman, who is leading the Project Rise consortium, told The Post.
The Paramount Special Committee would not meet with the group, she said. “Even more brazenly,” the suit alleges, “Skydance has agreed to pay for Redstone’s Central Park apartment and to pay for the lease for her private jet. Most egregiously, Skydance has agreed to indemnify Redstone for any breach of fiduciary duty claims arising out of the proposed merger, knowing full well that she would face massive personal liability for extracting so much value for herself.”
Project Rise Partners filed under seal with the judge how it has arranged the financing for what would be the A$14.04 billion merger, said Ziman.
Paramount Global is also facing other hurdles such as settling a A$31.9 billion lawsuit alleging media bias by President Trump at CBS News over a “60 Minutes” interview with former Vice President Kamala Harris.
The deal will also need to be cleared by the FCC and its chairman, Brendan Carr, with a verdict expected later this month.
