Movies

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

BBG News

The creators of “South Park” on Comedy Central have accused Skydance Media and its partners of intervening improperly in Paramount Global’s affairs, prior to gaining ownership of the well-known corporation.

Previously, The Los Angeles Times announced that talks about a “South Park” streaming agreement have hit a roadblock due to Paramount’s ongoing $8-billion acquisition by David Ellison’s Skydance Media. According to insiders, Skydance has expressed reservations about a proposed total deal worth $2-billion with “South Park” creators Trey Parker and Matt Stone.

According to federal securities regulations, it’s illegal for a company to exercise excessive control over a business it intends to purchase before the acquisition is finalized, a practice known as “gun-jumping”. In this specific case, Paramount granted Skydance the authority to approve significant transactions during the period when the takeover was still pending.

However, it’s been claimed this week by Park County, the organization operating the satirical cartoon for years, that Ellison’s allies overstepped their bounds by meddling in its business talks with other corporations.

Through a series of correspondence, Park County expressed doubts about the behavior of Jeff Shell, a former CEO of NBCUniversal who is involved in Ellison’s bidding group. Shell holds a significant position at RedBird Capital Partners, a private equity firm assisting Skydance in financing the Paramount deal.

On Tuesday, lawyers from Park County wrote a letter to RedBird’s legal team (which was later obtained by The Times), alleging that Shell had engaged in inappropriate actions by interfering with the auction for the “South Park” streaming rights and trying to undervalue the show. Specifically, they claimed that Shell’s actions were characterized as “unauthorized, intrusive, and gun-jumping misconduct.

In a dispute, the attorneys argued that there was absolutely no provision within the 160-page contract signed by Skydance and Paramount that allowed either Skydance or Redbird to interfere with negotiations concerning the “South Park” streaming agreements.

The behavior in question is currently leading to damage, not just for the ‘South Park’ enterprise, but also for the longstanding creative partnership between artists and the studio on this renowned production, as stated by the legal team.

A representative from Skydance firmly denies allegations of wrongdoing against Jeff Shell. Such claims suggesting he attempted to reduce the price or diminish the value of the franchise are not just illogical, but blatantly untrue.

According to the contract agreement, Skydance is authorized to give approval for significant deals or contracts,” the spokesperson explained further.

The disagreement arises as the creators of “South Park” are looking for a fresh streaming partnership following the expiration of their five-year contract with Warner Bros. Discovery’s Max service. Paramount aims to feature the classic Comedy Central series on its Paramount+ platform. Due to the substantial cost associated with the show, Paramount proposes to split the rights to the 333 episodes with another streaming platform.

Experts predict that the annual distribution fees for “South Park” will exceed $200 million.

However, it appears that Skydance Animation isn’t in agreement, feeling the proposed deals are excessively expensive based on information from various sources. On the other hand, Paramount executives seem to believe the series’ lasting global fame and historical significance justify the high cost.

Hollywood Inc.

Paramount is working hard to acquire the streaming rights for ‘South Park,’ but a definitive agreement hasn’t been reached yet because the Skydance deal remains undecided.

In negotiations between Park County and potential collaborators, Netflix and Warner Bros. Discovery, it’s claimed that Shell intruded on these discussions regarding the show’s licensing. Both parties have shown interest in this arrangement.

In simpler terms, Park County claims that Shell contacted the executives from other companies in an attempt to reduce their bids for “South Park,” thereby denying Parker, Stone, and Paramount the chance to receive a larger licensing fee.

50% ownership of South Park Digital Studios, a joint venture they share with Paramount, gives them control over the streaming rights for the show. However, Trey Parker and Matt Stone own the remaining half of this partnership, which has been in place since 2007.

In a letter sent on Monday, attorney Joseph R. Taylor expressed his concern that the adjustments suggested by Mr. Shell would disadvantage South Park Digital Studios and seem to be strategically planned to reduce the value of Skydance Media’s acquisition objective, Paramount Global.

As a devoted fan, I’m deeply troubled by the unacceptable behavior that’s been tearing apart the creative fabric of South Park. It’s not just affecting their business deals for Subscription Video On Demand rights, but also damaging the long-standing artistic partnership between the creators and the studio behind this iconic show. If such misconduct continues, I believe it will leave us with no choice but to take legal action.

According to two sources familiar with the situation, Skydance has raised concerns about the length of proposed agreements with Paramount+ (to be renamed HBO Max) and Max – specifically, a 10-year period. Similarly, Skydance reportedly prefers five-year contracts for their partnership with Parker and Stone, citing market changes as the reason.

Max’s agreement to stream “South Park” expired this week, but since the company is keen on acquiring the broadcasting rights, the series will continue to air on the platform until a fresh deal is finalized. This was shared by someone close to the company who requested anonymity due to not being authorized to make public statements.

Hollywood Inc.

Harry and Meghan aren’t the only people mad at the long-running satirical cartoon.

Leaders at Paramount are aiming to secure the broadcasting rights for “South Park” in both the U.S. and overseas markets, as well as extending their existing $900-million contract with the show’s creators to ensure continuous production of fresh episodes. However, this current deal doesn’t conclude until two more years have passed, and executives at Skydance prefer not to extend it until they assume ownership of Paramount, based on reports from reliable sources.

New episodes run first on Paramount’s basic cable network Comedy Central.

One significant television franchise in Paramount’s portfolio is “South Park”. In conjunction with “The Daily Show” featuring Jon Stewart, the group of four characters from the fictitious Colorado town of South Park helped establish Comedy Central as a go-to choice for basic cable viewers.

During a May earnings discussion, Chris McCarthy, one of the co-CEOs at Paramount who oversees Paramount’s media networks along with Showtime and MTV Entertainment Studios, hinted to investors that episodes of “South Park” might become available on Paramount+ starting in July. However, it seems the agreement is yet to be finalized.

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2025-06-26 02:31

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