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Skydance Media, which agreed to a deal to purchase Paramount Global last month, is accusing the media company of breaching the terms of its deal by extending the time it has to engage with other bidders.
“While Skydance is not currently exercising its right to terminate the Transaction Agreement, we reserve the right to do so in the future,” Skydance’s attorneys wrote in a letter that was sent on Thursday, according to a WSJ report.
Paramount (NASDAQ:PARA) reportedly on Wednesday extended the “go shop”period to solicit other offers after it was originally expected to expire on Wednesday night.
Skydance said that by not terminating talks with Bronfman’s team by the end of Wednesday, “Paramount has committed an incurable, material breach of the Transaction Agreement,” the letter stated, according to the WSJ.
The “go shop” was extended after Edgar Bronfman revised what on Monday was a $4.3B offer up to a total of $6B for National Amusements — which controls the venerable Hollywood studio — and for a minority stake in Paramount itself, the WSJ reported.
Bronfman and the Paramount special committee declined to comment to the WSJ.
