New York Metropolis’s pension funds have issued a subpoena for billionaire media mogul Edgar Bronfman Jr. to testify of their lawsuit to dam the Skydance-Paramount merger, in keeping with two sources near the scenario.
The pensions hope the previous Warner Music CEO and present FuboTV govt chairman can make clear whether or not Venture Rise Companions has submitted a reputable bid to problem Skydance’s $8 billion deal to merge with Paramount, a supply with direct data of the case stated.
Daphna Ziman is main the Venture Rise bid, which it values at $8.8 billion not together with the idea of practically $5 billion in debt. Bronfman has a stake in Ziman’s Cinemoi, a bankrupt cable community targeted on vogue and movie, in keeping with Skydance.
The pensions — representing public service employees and overseen by NYC mayoral candidate Brad Lander — despatched the subpoena to the 69-year-old Bronfman this week. He shall be ordered by the Delaware Chancery Courtroom, which has been dealing with the case, to reply questions within the subsequent week or so, sources stated.
“They want to know if PRP’s financing is legit,” a supply stated.
In a letter filed in courtroom earlier this month, Skydance known as out Venture Rise for allegedly making an attempt to derail the merger, claiming it has uncovered proof of “fraud” and “misrepresentation” within the competing provide.
Skydance additionally raised the likelihood that Bronfman, who made his personal late try to purchase Paramount solely to withdraw it in August, could possibly be behind Venture Rise’s bid. In that case, the Paramount board already thought-about his provide and doesn’t have to once more, they argued.
“That Mr. Bronfman and/or the ‘Bronfman Group’ have personal and economic relationships with
PRP’s principal (Ms. Ziman) and syndicate member (Mr. Gross) suggests PRP’s fraudulent
bidding may be motivated in part by Mr. Bronfman’s prior failed bid and, at the very least,
commands further investigation.”
Ziman and Bronfman declined to remark.
Initially, the NYC pensions had been asking the courtroom for a restraining order to dam the merger. They’ve since withdrawn that request, however are contemplating refiling for an injunction if Bronfman verifies that Venture Rise’s bid was reputable, a supply stated.
If Bronfman fails to provide proof that PRP has sufficient financing in place, the pensions will probably wait to see if the long-stalled merger with David Ellison’s Skydance lastly goes by way of — after which sue the newly-formed firm for allegedly underpaying buyers apart from controlling shareholder Shari Redstone, the supply stated.
The FCC has held up signing off on the Paramount merger whereas the company investigates allegations of biased enhancing of an interview with Democratic presidential candidate Kamala Harris by CBS’ “60 Minutes” forward of the November election.
