A Delaware judge has declined to block the closing of a deal that would hand Paramount’s reins from media mogul Kathaleen St. J. McCormick to investor David and Larry Ellison. The decision allows New York City’s public pension funds, represented by Grant & Eisenhofer PA, to renew their motion to open a bidding war.
The judge gave the funds permission to pursue their claim, which alleges that Redstone breached her fiduciary duties to Paramount’s stockholders. The lawsuit seeks to invalidate sections of the Skydance merger agreement that prevent Paramount’s special transaction committee from considering the Project Rise bid.
Paramount is set to close as soon as March 20, but the deal has faced several legal challenges, including overlapping shareholder lawsuits. Redstone is seeking to settle a lawsuit with the Trump administration over a CBS interview with former Vice President Kamala Harris.
The judge ordered Paramount’s board to give the pension funds advance notice of at least five business days before consummating the merger. The case, NYC Emp. Ret. Sys. v. Byrne, Del. Ch., No. 2025-0126, is now on a fast track.
Source: https://news.bloomberglaw.com/esg/paramount-skydance-merger-advances-as-judge-considers-higher-bid