Paramount’s ‘South Park’ streaming deal is in limbo as Skydance merger drags on
Giant media company Paramount Global aims to prevent a streaming future devoid of characters like Eric Cartman, Stan Marsh, Kyle Broflovski, and Kenny McCormick (from South Park).
Amidst challenges in finalizing a crucial merger, Paramount is engaged in extended discussions to prolong one of their largest and most significant franchises: the popular and influential adult animated series “South Park.
For the next two years, the comprehensive $900-million agreement between Paramount and the creators of “South Park”, Matt Stone and Trey Parker, remains active. The fresh installments of this popular series debut initially on Paramount’s fundamental cable channel, Comedy Central.
However, the attempts to revive the project for broadcast on Paramount+ streaming platform have encountered a significant obstacle, as indicated by sources familiar with the talks who requested anonymity due to not being permitted to speak openly about it.
The circumstance reveals significant disputes and differences among a group of top executives as they navigate Paramount’s management prior to its sale to David Ellison’s Skydance Media, which holds veto power over major deals like the “South Park” agreement under the conditions stipulated with Paramount.
Leading figures are keen to secure the streaming privileges for “South Park” in both the U.S. and other regions, as they’ve been displeased with a licensing agreement from six years ago that sent “South Park” to HBO Max, which is owned by Warner Bros. Discovery. This arrangement has been causing them trouble due to its terms made by the previous administration. The current deal concludes this month.
South Park” stands out as one of Paramount’s significant television productions. Together with “The Daily Show With Jon Stewart,” the series featuring four boys satirizing celebrities played a crucial role in establishing Comedy Central’s presence for basic cable viewers. Through their witty commentary on controversial topics such as Scientology, the War on Terror, the royal family, and the Trump administration, they made a mark on various social issues that resonated with viewers.
On a May earnings conference, the joint CEO of Paramount, Chris McCarthy (overseeing Paramount’s media networks along with Showtime and MTV Entertainment Studios), informed shareholders that starting from July, “South Park” episodes will be available for streaming on Paramount+.
Nevertheless, it appears that Paramount hasn’t yet secured the streaming rights for “South Park,” as indicated by sources privy to the discussions. This spring, Paramount is said to have put forth at least one proposal to Trey Parker and Matt Stone, extending their existing agreement prematurely.
The company also wants to secure rights to stream the 333 episodes of “South Park” on Paramount+.
A number of experts anticipate that the annual distribution fees for “South Park” will exceed $200 million.
However, it appears that Skydance isn’t agreeing to the terms yet, as they find them excessively expensive based on the information from our sources. On the other hand, Paramount executives seem convinced that the series’ lasting fame and appeal justify the hefty price tag.
Representatives for Paramount and Skydance declined to comment.
On Friday, Hollywood agent Ari Emanuel, who represents Parker and Stone through his company WME, spoke over the phone to defend Paramount and Skydance’s actions regarding the current situation.
In a quick conversation with The Times, Emanuel stated that nothing has been turned down; instead, it’s being thoroughly evaluated. Furthermore, he mentioned that there are proposals from various other distributors who are all eager to secure this program.
The $8-billion acquisition of Paramount by Skydance has been on pause for several months now, as both parties await clearance from federal regulators. With the backing of tech entrepreneur Larry Ellison and RedBird Capital Partners, Skydance is excited to bring Paramount, a renowned media company, under its wing.
It’s been reported that they plan to enhance financial discipline within Paramount’s business activities. According to both Paramount and Skydance, this deal is projected to generate a total of $2 billion in cost reductions, with approximately half of that amount expected in the initial year.
Time is running out as we approach the deadlines. Our upcoming season, marking its 27th year, will premiere on Comedy Central on July 9.
If Paramount doesn’t reach an agreement with the creators by June 23rd, they might potentially lose the rights to stream the franchise, as Parker and Stone may consider offering it to other streaming platforms like Netflix, Amazon Prime Video, or Hulu instead. Yet, it’s worth noting that discussions could carry beyond the deadline, and both sides anticipate a deal will eventually be finalized.
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Through their longtime attorney Kevin Morris, who is currently handling negotiations, the pair originally secured internet rights around two decades back. They established a joint venture with Paramount (formerly Viacom) called South Park Digital Studios, which has proven to be extremely profitable for Parker and Stone, who are also famous for the successful Broadway musical “The Book of Mormon.
In this collaboration, Paramount shares equal control with Stone and Parker over the streaming rights for a comedy series originally aired on Comedy Central back in 1997. However, they have the ability to reject any streaming agreements that they deem unsuitable.
Generally, companies should avoid interfering excessively in each other’s business matters. Federal antitrust regulations forbid a practice known as “gun-jumping,” which occurs when an acquiring company starts making decisions before the transaction is officially completed. However, Paramount has consented to consider Skydance’s suggestions on significant expenses while they are still in the process of finalizing their deal.
The ongoing negotiations for streaming rights of “South Park” have been made more complex due to a lawsuit initiated by Warner Bros. Discovery two years ago. This company alleges that Paramount breached the terms of their 2019 licensing agreement for “South Park,” claiming they overpaid approximately $540 million for the streaming rights after the purchase.
In partnership with Paramount, the creators of “South Park” produced exclusive specials starring their four cartoon characters set in a fictional Colorado mountain village, available only on Paramount+. Warner Bros. contested that this action breached our licensing agreement. HBO Max chose not to provide a statement on the matter.
Two years following the HBO Max agreement, Paramount entered into a fresh contract with Parker and Stone worth $900 million, solidifying their relationship and guaranteeing continued production of “South Park” through 2027. Paramount officials even proposed extending this partnership for additional years.
Paramount has long intended to shift the show to Paramount+ as soon as the HBO Max deal expires.
In this envisioned situation, multiple streaming platforms could jointly hold both domestic and foreign rights for various content. However, neither of these partners would possess exclusive rights. Currently, the television industry is seeing a shift towards maximizing revenue for costly productions such as “South Park,” while retaining some streaming rights to ensure continued profitability.
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Additionally, Paramount is grappling with another predicament, made more intricate by the Skydance merger. The corporation has been trying to resolve a $20-billion lawsuit initiated by President Trump, which accuses subsidiary CBS News of manipulating an interview with then-Vice President Kamala Harris on “60 Minutes,” a charge that CBS refutes.
The decision regarding Trump’s case remains pending, and the Federal Communications Commission (FCC) has been taking its time to assess Skydance’s proposed acquisition of Paramount, thereby prolonging the review process for this deal.
The Skydance deal is currently under review at the Federal Communications Commission since the autumn, keeping Paramount leaders uncertain about its outcome.
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2025-06-14 03:31