Skydance is pushing back against attempts to disrupt its $8 billion merger with Paramount Global, accusing late-arriving bidder Project Rise Partners (PRP) of fraud and attempting to “hijack” the regulatory review process.
In a letter to the FCC reviewing the deal, Skydance’s legal team argued that PRP’s bid, submitted after Paramount’s 45-day “go-shop” period ended, is both untimely and illegitimate. With no officially recognized alternative, Skydance asserts it has a binding agreement with Paramount to complete the merger.
Skydance Slams PRP’s Bid as “Unserious” and “Fraudulent”
Skydance lawyers claim PRP’s objections are nothing more than a stalling tactic to buy time for ongoing litigation in Delaware. “Project Rise is trying to hijack this process to force Paramount’s board to consider a belated and unserious bid,” the letter states. It also alleges that “overwhelming evidence” has emerged proving PRP “fraudulently misrepresented itself,” with discrepancies in its offer term sheet and indications that its financial backing is shaky.
Last week, a Delaware judge declined to block the Paramount-Skydance merger but expedited a shareholder lawsuit demanding that Paramount reconsider PRP’s higher, all-cash offer—submitted after the “go-shop” window closed. Some Class B shareholders have expressed concerns that Paramount chair Shari Redstone and other executives could benefit from the Skydance deal at the expense of investors.
Paramount Merger Faces Political and Regulatory Hurdles
Complicating matters, Donald Trump’s return to office has introduced new roadblocks. The former president filed a $20 billion lawsuit against CBS News over its handling of a Kamala Harris interview before the 2024 election, while Trump-appointed FCC Chair Brendan Carr has raised concerns about potential “news distortion” by the network. These developments could impact regulatory scrutiny of the Paramount merger.
Despite these challenges, Paramount remains confident the deal will close by the end of June.
PRP Raises Concerns Over National Security, Content Control, and AI in Media
PRP has countered Skydance’s claims by filing its letter with the FCC, urging an investigation into the merger’s potential risks. In its 13-page filing to the FCC, the group warns that a Chinese company allegedly involved in the deal could exert influence over key U.S. broadcast licenses. PRP also raises concerns about Skydance’s content distribution strategies, rising retransmission costs, and the potential replacement of human talent with AI-driven bots.
“The proposed merger specifically raises serious public interest concerns that the Commission should thoroughly investigate, including the risk of: (i) facilitating and perpetuating practices related to the tying of multiple programming networks in a manner that inhibits the creation of new programming content; (ii) the influence of a Chinese military company partly owned by the Chinese government and the Chinese Communist Party over one of the four major national broadcast networks – the sanctum sanctorum that the Commission and the Communications Act have consistently and rightly viewed as the part of the U.S. communications ecosystem that is most vulnerable to foreign interference; (iii) undermining the integrity of national and local broadcast news; and (iv) increased consumer prices. These issues merit close scrutiny.”
Financing in Question as Skydance Challenges PRP’s Credibility
One of Skydance’s key arguments is that PRP has failed to prove it has the necessary financing. In a blistering legal response, Skydance pointed out that PRP’s own supporters in the Delaware lawsuit have “expressly disclaimed” any assurance that PRP’s bid is superior or financially viable. Adding to the skepticism, PRP previously cited Goldman Sachs as an advisor—only for Goldman to issue a statement denying any involvement in the deal.
PRP’s bid is also linked to Edgar Bronfman Jr., who previously withdrew his own bid for Paramount during the “go-shop” period before congratulating Skydance on its agreement. Skydance further noted that Cinémoi, a media company co-chaired by PRP’s Daphna Edwards Ziman, filed for bankruptcy last year—raising further doubts about PRP’s ability to execute a deal of this magnitude.
As regulatory and legal battles intensify, the fate of the Paramount-Skydance merger remains uncertain, with both sides fighting for control of one of Hollywood’s biggest media assets.
To download the Project Rise Partners filing, click below.
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