Paramount Global (NASDAQ:PARA) is racing against time as legal and regulatory roadblocks threaten to upend its $8 billion merger with Skydance Media. A Delaware Chancery Court judge has fast-tracked a lawsuit filed by New York City pension funds, which claim the deal unfairly benefits controlling shareholder Shari Redstone while shortchanging public investors. The lawsuit argues that Paramount's board ignored a higher $13.5 billion cash bid from Project Rise Partners, raising concerns about fiduciary duty. While the court stopped short of blocking the deal outright, Paramount must now give at least five business days' notice before closing, leaving room for further legal challenges.

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Meanwhile, regulatory uncertainty looms large. The merger is still awaiting approval from the Federal Communications Commission (FCC), with an initial deadline of April 7, though extensions are possible. Investors are also scrutinizing financial filings suggesting Redstone is set to receive a premium far above what Class A and B shareholders will get, sparking transparency concerns. Adding to the turbulence, Rhode Island pension funds and investor Mario Gabelli (Trades, Portfolio) have filed separate cases demanding more details on the financial structure of the deal.

With a potential closing date as early as March 20, the pressure is mounting. If the lawsuit gains traction or regulators drag their feet, the deal could face delaysor worse, collapse altogether. The case underscores a growing issue in media mega-mergers, where controlling stakeholders can tilt the playing field in their favor while retail investors are left in the dark. As the legal and regulatory chess game unfolds, the next few weeks will be critical in determining whether this merger actually crosses the finish line.