Mario Gabelli Cindy Ord/Getty Images for Yahoo Share on Facebook Share on X Share to Flipboard Send an Email Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Print the Article Post a Comment Logo text Shari Redstone may have sealed the deal on an $8 billion Paramount Global merger with Skydance Media, but her holding company, National Amusements, may now face a flurry of legal challenges. A major shareholder of Paramount stock has filed a class action lawsuit over the company's merger with Skydance, the first of what's expected to be several complaints involving the payout to minority investors in the deal. Billionaire money manager Mario Gabelli's Value 25 Fund and its affiliates (GAMCO), in a lawsuit filed under seal on Wednesday in Delaware Chancery Court, alleges National Amusements received "unfair and inequitable" payouts compared to other investors, who believe that the merger enriched controlling shareholder Shari Redstone at their expense. Related Stories Movies Paramount Co-CEO Brian Robbins Shares Farewell Memo as Skydance Deal Closes Business "Forever Grateful": Shari Redstone Signs Off As Paramount's Owner Ahead of Skydance Deal Close The filing follows Skydance Media closing its takeover of Paramount on Aug. 7 to form a "next-generation media and technology leader, positioned to win in today's rapidly transforming media landscape." In a letter to shareholders, chief executive David Ellison outlined his vision for the company, which included merging Paramount+ and Pluto onto the same tech stack and leveraging new tech to empower creatives. He said that the company will operate in a cost-effective way, though he added that it will "face some hard but necessary decisions to align our team for growth and efficiency." After the announcement of the merger last year, GAMCO, which pushed to put the deal to a vote by minority investors, moved for access to Paramount's books and records. The company produced thousands of documents, though Gabelli said that they didn't provide sufficient transparency to properly assess the fairness of the deal. The court rebuffed his bid to mandate the production of more information. Based on public documents and disclosures that the Paramount special committee produced, GAMCO alleges that National Amusements received at least $60 per class A share while other class A shareholders received $23 per share. In a statement, GAMCO co-CIO Christopher Marangi said the firm voiced its concerns early in the merger process and asked for more transparency regarding what National Amusements would receive for its voting shares. "These concerns were ignored and, lacking the ability to continue holding voting shares in the new Paramount entity, GAMCO was forced to redeem its shares for cash," it added. As part of the merger, class A shareholders received $23 per share, while class B shareholders received $15 per share. Among the information Gabelli sought was whether Redstone was slated to receive more money for her class B shares than others. He didn't have an issue with Redstone, who got roughly $1.75 billion for her controlling stake, cashing out her class A shares at a premium. Before the merger, GAMCO was the largest holder of nonvoting shares. It chose cash over shares in Paramount Skydance Corporation. THR Newsletters Sign up for THR news straight to your inbox every day Subscribe Sign Up THR, Esq Drake Seeks Kendrick Lamar's Contract, Evidence of Domestic Violence In Legal Fight THR, Esq Priscilla Presley Sued for $50 Million Amid Power Struggle Over Graceland Business Empire Jon Voight Jon Voight Effort for Federal Film Tax Deduction Gets Bipartisan Backers in Congress Disney Disney Entertainment Reorganizes Marketing Under Asad Ayaz, Shannon Ryan siriusxm What Really Could Be Killing Howard Stern's Show siriusxm Howard Stern Tries to Own the Rumor Mill of His SiriusXM Demise THR, Esq Drake Seeks Kendrick Lamar's Contract, Evidence of Domestic Violence In Legal Fight THR, Esq Priscilla Presley Sued for $50 Million Amid Power Struggle Over Graceland Business Empire Jon Voight Jon Voight Effort for Federal Film Tax Deduction Gets Bipartisan Backers in Congress Disney Disney Entertainment Reorganizes Marketing Under Asad Ayaz, Shannon Ryan siriusxm What Really Could Be Killing Howard Stern's Show siriusxm Howard Stern Tries to Own the Rumor Mill of His SiriusXM Demise