Fund manager Mario Gabelli, the largest holder of Paramount Global's Class A voting stock after Shari Redstone, said he absolutely needs more information about the Skydance transaction than what has been made public so far before he can decide whether he likes the terms.
Billionaire investor Mario Gabelli on why he wants more clarity in Skydance-Paramount deal
On Friday, Gabelli sent a letter to Paramount requesting documents to clarify the $2.4 billion that David Ellison's company and his lenders agreed to pay Redstone for her family holding company National Amusements under the merger agreement announced a week ago. NAI's assets include about 80% of the voting stock of Paramount Global — which gives a buyer control of the company — as well as the National Amusements movie theater chain and potentially other assets and investments. There was no breakdown in the deal announcement.
“We don't know exactly how much is being paid for her voting rights in Paramount,” Gabelli told Deadline today.
That's a problem because the merger terms require all non-Class A shareholders, like Gabelli and hundreds of his clients, to tender their Class A shares for $23 each, or exchange each of their Class A shares for 1.53 shares of non-voting Class B stock.
