(Reuters) -Skydance Media is accusing Paramount Global’s special committee of directors of violating the terms of the deal by extending the period in which it can engage with other bidders, the Wall Street Journal reported on Thursday.
This comes after veteran media executive Edgar Bronfman Jr sweetened his bid to take over Paramount by offering $6 billion to its controlling shareholder National Amusements and a minority stake in Paramount.
Bronfman’s competing bid threatens to undo a planned takeover by tech scion David Ellison and his independent studio Skydance Media.
Shares of Paramount, home to Paramount Pictures, the CBS broadcast network and cable networks such as MTV, fell 1.5% in extended trading.
“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 lawyers were quoted in a letter.
Paramount’s special governance committee and a spokesman for Bronfman declined to comment. A spokesperson for Skydance Media could not immediately be reached.
The special governance committee extended the Aug. 21 deadline for the go-shop period to Sept. 5 for the Bronfman consortium, Paramount said Wednesday.
If Paramount, controlled by Shari Redstone’s family company, accepts an offer that Skydance cannot match, the media conglomerate would have to cough up a $400 million breakup fee.
