A prolonged examination of the FCC in the context of the prosecution of President Donald Trump feeds speculations that a paramount-skid marriage could go to the rocks.
In a note on Wednesday, analyst Rich Greenfield of Lightshed Partners expressed what the others began to wonder, saying that he was “increasingly concerned about the agreement to be able to collapse because Paramount is paralyzed by the legal fears surrounding the president of President Trump – CBS 60 minutes.”
The proposed merger announced last summer carried out several 90 -day automatic extensions. If he does not close by July 7, it will trigger another lap until early October. Greenfield thinks that the parties will move away if it is not done by then. Breakdown fees of $ 400 million would not apply in this case, as FCC approval was a condition for the agreement.
Trump continued the CBS of Paramount for $ 20 billion for its modification of the extracts of an interview with the former presidential candidate Kamala Harris and there has been mediation but no regulations so far. Meanwhile, Washington DC politicians and California and a public interest group warned the shareholder controlling Paramount, Shari Redstone, that if the company is settling in, it can be interpreted as a bridge pot because it awaits the approval of the agreement. “We believe it is unlikely that the FCC only weighs Trump / CBS’s current trial to be resolved,” said Greenfield.
However, now “it seems clear that the board of directors of Paramount and senior executives are concerned about personal responsibility linked to the signing of a Trump regulations,” he said. He noted that the trio of new directors announced this week included the respected litigant Mary Boies, wife of the Legal Titan David Boies.
Hollywood is rooted for the Skydance of David Ellison and there was a feeling among investors that the agreement would finally conclude taking into account his father and his financial and billionaire Oracle Larry Ellison, the close relationship of Donald Trump. Paramount recently said that he expected the agreement to end in the first half. That said, he just set his annual meeting for early July.
The ligature is messy. Senator Elizabeth Warren (D-MA), Senator Bernie Sanders (I-VT) and Senator Ron Wyden (D-OR) have warned Redstone in a letter that potential regulations can violate federal corruption laws. The heads of the Senate, Public Services and Communications Committee of the State of California and the Senate Judicial Committee in Sacramento, the Senators Josh Becker and Thomas J. Umberg, informed the board of directors of Redstone and paramount that they began an investigation to see if the laws on corruption and the unjust competition of Golden State are on the verge of being violated. And the non -profit group Freedom of the Press said that it intended to continue paramount if he settles down, saying companies that have media. “Should not be in the field” to settle “baseless proceedings which clearly violate the first amendment and put other media in danger”.
Redstone Paramount controls through the national family portfolio company amusements, which also has national cinema amusements and lasted a fight for years to serve its debt. As Greenfield pointed out, the merchant bank BDT Capital Partners and the Ellison family have lent NAI to nearly $ 400 million. It is not clear what is the reimbursement calendar and the conditions of the Ellisons, or would be if the agreement is disintegrated.
A Wall Streeter noted that Nai had assets, including her primordial actions around several of her theaters, although she sold them.
The representatives of Paramount and Nai refused to comment.
“We all want David in it,” said this person, “but the more he needs to enter and make changes, it’s not good for one or the other company.”
