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Non-Profit Files Petition To Block Paramount-Skydance Merger

Photo from Hannah Wernecke via Unsplash

Why a Non-Profit Wants to Block Paramount-Skydance Merger

By Movieguide® Contributor

The Center for American Rights has filed a petition with the FCC, expressing concern over the upcoming merger between Paramount Global and Skydance Media. 

The non-profit law firm pointed to Skydance’s investment in China’s Tencent Holdings, saying it raises “troubling questions about undue foreign influence from China.”

“The Center asks the Commission to condition its grant of approval of the merger on specific commitments by the new corporation to address these issues, and to place the approval on a probationary status for an appropriate period of years until compliance with the conditions is evident,” CAR wrote in their petition. 

Both Paramount and Skydance have declined to comment on CAR’s petition. 

READ MORE: HOW WILL THE PARAMOUNT-SKYDANCE MERGER AFFECT YOU?

This merger has faced a lot of opposition. In July, Scott Baker, a Paramount Global investor, sued to block the merger, saying it would cost shareholders $1.65 billion. 

Baker’s suit “claims the merger’s primary purpose is to cash out media mogul Shari Redstone’s investment in Paramount at a substantial premium, while other stockholders will receive a significantly lower payout,” per Reuters. 

Additionally, entertainment company Fuse Media “suggest[ed] to a federal regulator that Paramount Chair Shari Redstone would be overpaid in the deal, to the detriment of the media business,” according to Bloomberg. 

Fuse argued that the money would be better spent “investing in operational functions, such as the promotion of local news or general entertainment content.”

Paramount shareholder Mario Gabelli also asked the FCC to pause their review of the transfer licenses for the merger to give him time to investigate “potential fiduciary and/or federal securities violations” against minority shareholders. 

All petitions to deny the Skydance deal were due Dec. 16, with oppositions due Jan. 2 and replies due Jan. 13.

READ MORE: SKYDANCE MEDIA AND PARAMOUNT REACH NEW MERGER AGREEMENT


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