Skydance Media supposedly accused Paramount Global's special committee of directors of breaching its deal by prolonging its "go-shop" period, The Wall Street Journal reported, citing a letter.
"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 wrote in a letter sent on Thursday after Paramount extended the period when it can engage with other bidders for the company on Wednesday until September 5. Paramount's extension came after the company received a $6 billion offer from media executive Edgar Bronfman Jr. for National Amusements, the parent company of Paramount and a stake in Paramount itself.
Skydance argued that Paramount "has committed an incurable, material breach of the Transaction Agreement" by not stopping all negotiations with Bronfman by the end of Wednesday. Skydance also said that Bronfman's offer wasn't superior, meaning that Paramount shouldn't have extended the "go-shop" period.
