'South Park' dispute escalates as creators accuse Paramount's buyers of meddling

The squad down Comedy Central’s “South Park” raised allegations that Skydance Media and its associates overstepped their authorization by meddling successful Paramount Global’s concern earlier they instrumentality power of the storied company.

The Los Angeles Times antecedently reported that negotiations implicit a “South Park” streaming woody person stalled amid Paramount’s protracted $8-billion merchantability to David Ellison’s Skydance Media. Skydance balked astatine a projected $2-billion wide woody with “South Park” creators Trey Parker and Matt Stone, sources person said.

Federal securities laws forbid “gun-jumping,” a word that describes a institution that exerts excessively overmuch power implicit a concern it is successful the process of buying earlier the transaction closes. Under the presumption of the merger deal, Paramount gave Skydance the quality to o.k. large deals portion the merchantability is pending.

But this week, Park County — the concern entity down the long-running satirical cartoon — alleged that Ellison’s associates crossed the enactment by interfering with its negotiations with different companies.

In a bid of letters, Park County questioned the behaviour of Jeff Shell, a erstwhile NBCUniversal main enforcement who is portion of Ellison’s bidding team. Shell is simply a elder enforcement with RedBird Capital Partners, a backstage equity steadfast that is helping Skydance concern the Paramount deal.

In a Tuesday missive to RedBird’s wide counsel, which was viewed by The Times, Park County’s lawyers accused Shell of committing “intrusive, unauthorized, and weapon jumping misconduct” by inserting himself into the auction for “South Park” streaming rights and attempting to depress the show’s value.

The lawyers contended that “not 1 word” successful the 160-page merchantability statement betwixt Skydance and Paramount authorized Skydance oregon Redbird to “intrude” into negotiations implicit “South Park” streaming deals.

“This misconduct is already causing demolition not lone to the concern of ‘South Park’... but besides the productive decades-long narration betwixt artists and workplace connected an iconic show,” the lawyers wrote.

A spokeswoman for Skydance disputed misconduct by Shell, adding, “Any accusation that Jeff Shell tried to little the terms oregon devalue the franchise successful immoderate mode is not lone nonsensical but patently false.”

“Under the presumption of the transaction agreement, Skydance has the close to o.k. worldly contracts,” the spokeswoman continued.

The quality comes arsenic the “South Park” creators enactment to enactment up a caller streaming woody aft its five-year pact with Warner Bros. Discovery’s Max work ended this week. Paramount wants to marque the long-running Comedy Central amusement disposable connected its Paramount+ platform. However, fixed the precocious outgo of the show, Paramount wants to stock the rights to the 333 episodes with different streaming service.

Knowledgeable radical person said they expect “South Park” organisation fees to beryllium valued astatine much than $200 cardinal a year.

But Skydance hasn’t signed off, believing the deals to beryllium excessively rich, according to aggregate sources. Paramount executives deliberation the amusement is worthy the large bucks, fixed its enduring planetary popularity and legacy.

Park County has alleged Shell inserted himself into negotiations with 2 prospective partners: Netflix and Warner Bros. Discovery. Both person expressed involvement successful licensing the show.

Park County accused Shell of calling executives astatine those companies to little their bids for “South Park,” which would deprive Parker, Stone and Paramount of a higher licensing fee.

Paramount owns fractional of a associated task called South Park Digital Studios, which controls the streaming rights to the show. Stone and Parker power the different fractional of the task that dates backmost to 2007.

“Mr. Shell’s projected changes worsen the woody for South Park Digital Studios, and they look to beryllium designed to cheapen the concern of Skydance Media’s acquisition target, Paramount Global,” Park County lawyer Joseph R. Taylor wrote successful a Monday missive to Paramount executives.

“This misconduct is already causing demolition not lone to the concern of South Park done depressing offers for the [Subscription Video On Demand] rights, but besides the productive decades-long narration betwixt artists and workplace connected an iconic show,” Taylor wrote. “Further misconduct of this quality volition people unit ineligible action.”

Two sources adjacent to the substance said that Skydance has objected to the 10-year span of the projected deals with Paramount+ and Max (soon to beryllium renamed HBO Max) arsenic good arsenic the 10-year span for the wide woody with Parker and Stone. Skydance, the sources said, preferred five-year deals owed to changes successful the market.

Max’s existent woody to watercourse “South Park” ended this week. However, owed to the company’s involvement successful bidding for the rights, the episodes volition stay connected the work until a caller woody tin beryllium worked out, said 1 idiosyncratic adjacent to the institution who was not authorized to talk publicly.

Paramount leaders privation to fastener down “South Park” streaming rights successful the U.S. and overseas and were funny successful extending Paramount’s $900-million wide woody with the “South Park” creators to warrant the accumulation of caller episodes. But that woody doesn’t expire for different 2 years, and Skydance executives don’t privation to widen that woody earlier they instrumentality power of Paramount, according to sources.

New episodes tally archetypal connected Paramount’s basal cablegram web Comedy Central.

“South Park” is 1 of Paramount’s astir important TV franchises. Along with “The Daily Show” with Jon Stewart, the 4 boys from the fictional Colorado hamlet of South Park enactment Comedy Central connected the representation for basal cablegram viewers.

During a May net call, Paramount co-Chief Executive Chris McCarthy — who runs Paramount’s media networks arsenic good arsenic Showtime and MTV Entertainment Studios — told investors that “South Park” episodes would statesman streaming connected Paramount+ successful July, though that woody has not been nailed down.