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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.
Bronfman's competing offer threatens to undo a planned
acquisition by tech scion David Ellison and his independent
studio Skydance Media.
Shares of Paramount, the home of Paramount Pictures, the CBS
broadcast network and cable networks such as MTV, were down 1.5%
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.
Paramount's special board committee and a spokesperson for
Bronfman declined to comment. A spokesperson for Skydance Media
could not immediately be reached.
The special board committee extended the Aug. 21 "go-shop"
period deadline until Sept. 5 for Bronfman's consortium,
Paramount had said on Wednesday.
If Paramount, controlled by Shari Redstone's family business,
accepts an offer that Skydance does not match, the media
conglomerate would have to cough up a $400 million in break-up
fee.
(Reporting by Jaspreet Singh in Bengaluru and Dawn Chmielewski
in Los Angeles; Editing by Shilpi Majumdar)
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