How famed investor Mario Gabelli could derail Paramount's Skydance merger: 'We want to see all the details'

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Business,Mario Gabelli,Mergers & Acquisitions

Cardinale knows the new Paramount run by a new generation of media mogul in David Ellison in an era of AI and technological change, could be the test-case for the industry’s future.

The famed investor is one of the media giant’s largest shareholders, with clients mostly in the common stock or “B shares” but also those holding the precious “A shares” or voting stock that Shari owns to make her the company’s de facto owner if and when this thing gets done.

The deal has an interesting clause: A 45-day “go shop” window for someone to come up with a better offer. That was one way to indemnify against shareholders’ suits by showing willingness to accept better bids.Wall Street is going toward a straight free fall — no one knows what’s going to happen with the marketNevertheless, it could spell trouble for closing the deal. For the common shareholders, their upfront payment was pretty meager.

But first, Gabelli says, he’s instructed his team to embark on something he calls “operation fishbowl,” meaning he wants to know everything about the deal, who is making money and how much, and what’s in it for his clients. That all changed now, he tells me. While he won’t comment on the Gabelli matter, he did tell me that “This was the hardest deal I’ve ever done in my career.”

 

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Paramount investor Mario Gabelli 'may not sell stock' in proposed Skydance mergerEarlier this week, heiress Shari Redstone surprised media insiders with her announcement that she was accepting a merger proposal from Skydance.
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