“This reporting creates a credible basis to believe that Ellison, other board members, and other Paramount executives may have breached their fiduciary duties or otherwise committed misconduct,” wrote the lawyers from the Public Integrity Project, which is representing the two prominent press advocacy groups.
To that end, the press freedom groups demanded “an inspection of Paramount’s books and records,” in accordance with a Delaware law that allows shareholders to review documents when there is a credible basis to suspect wrongdoing. Among the materials the groups are seeking are “all written or electronic documents or other books or records” related to Paramount’s “plans for CNN in the event that the merger is consummated.”
But the groups are also seeking far more, including documents related to any “side deal” tied to the infamous “60 Minutes” settlement with Trump; records concerning the foreign Gulf investment money financing nearly 40% of the WBD acquisition; files tied to the $150 million acquisition of Bari Weiss’ conservative opinion outlet The Free Press; and information related to the bidding process against Netflix for WBD.
The letter argued that the changes Ellison has already implemented at Paramount have tainted the company’s assets, specifically the overhaul of CBS News. The dramatic shakeup at the news division “have damaged CBS’s brand value and Paramount’s share value, to the detriment of Stockholders,” the letter said, pointing out that under Weiss’ leadership CBS News ratings have plunged to historic lows.
