Paramount-Skydance $8 Billion Merger Draws Court Challenge (3)

The planned $8 billion merger between Paramount Global and Skydance Media LLC would cost Paramount’s public shareholders more than $1.6 billion, according to a lawsuit challenging the transaction.

An investor sued to block the deal Wednesday, targeting media mogul Shari Redstone, her principal holding company, other Paramount board members, Skydance, and its CEO, David Ellison. The court complaint calls Redstone a “relentless controlling stockholder” who’s forcing through an unfair transaction to bail out her own “floundering” investment.

The transaction reflects “history repeating itself” after Redstone spent years working to merge CBS Corp. and Viacom—reuniting her family empire—by ousting ...