Skydance asks Paramount to stop negotiating with Bronfman, WSJ reports

(Reuters) -Skydance Media is accusing Paramount Global's special committee of directors of breaching the terms of its deal by extending the period of time when it can engage with other bidders, the Wall Street Journal reported on Thursday.

This comes after veteran media executive Edgar Bronfman Jr sweetened his bid to take over Paramount offering $6 billion for its controlling shareholder National Amusements and a minority stake in Paramount.

Shares of Paramount, the home of Paramount Pictures, the CBS broadcast network and cable networks such as MTV, were down 2.7% in extended trading.

"While Skydance is not currently exercising its right to terminate the transaction agreement, we reserve the right to do so in the future," the report quoted Skydance's attorneys as saying in a letter.



Two spokespeople for Skydance Media and Paramount's board could not immediately be reached for a comment.

A special board committee has extended the Aug. 21 "go-shop" period deadline until Sept. 5 for Bronfman's consortium, Paramount had said on Wednesday.

Source: Investing.com