A Delaware Chancery Court decision has thrown doubt on the Skydance merger with Paramount Pictures. Chancellor Kathaleen McCormick has requested more information from pension funds that sued to block the deal, which would have increased its value by $800 million. The delay is seen as a setback for Skydance, and analysts are now questioning whether the merger will move forward.
The decision comes after reports suggested that Skydance had anticipated issues with the upcoming 60 Minutes interview featuring former Vice President Kamala Harris. The company reportedly attempted to secure the interview transcript’s release but faced resistance from CBS News. Despite this, Skydance was able to get its way, and this may have contributed to the court’s decision.
Paramount Pictures’ stock price has surged nearly 2% following news of the merger bid being put on hold. However, analysts remain divided on the potential for a successful deal, with some assigning “Hold” ratings and others expressing concerns about the company’s legal troubles.
Source: https://www.tipranks.com/news/ma-news-paramount-nasdaqpara-merger-may-go-back-to-bid