- Delaware Chancery Court finds credible basis for Gabelli Asset Management Inc. (GAMI, Financial) to suspect wrongdoing in Paramount's transactions with NAI.
- GAMI claims National Amusements, Inc. (NAI) receives additional compensation for Paramount voting shares, unlike other shareholders.
- GAMI's Project Fishbowl aims to ensure equitable distribution of consideration among all Paramount voting shareholders.
Gabelli Asset Management Inc. (GAMI) has successfully argued in Delaware Chancery Court that there is a credible basis to suspect wrongdoing by Paramount Global in its handling of transactions involving National Amusements, Inc. (NAI). GAMI, as the largest non-NAI holder of Paramount's voting shares, claims that NAI, controlled by Ms. Shari Redstone, has received additional compensation for these shares, which is not available to the other shareholders.
The court's finding supports GAMI's ongoing efforts under Project Fishbowl to ensure full transparency regarding the deals between Paramount and NAI. GAMI believes that Paramount's public filings failed to ascribe value to any NAI assets apart from the Paramount stock itself, leading to greater compensation for NAI's voting shares compared to the $23 per share offered to minority shareholders.
Christopher Marangi, Co-CIO at GAMI, quoted Justice Brandeis, stating, "Sunlight is the best disinfectant," and emphasized the need for transparency. GAMI intends to continue its pursuit of a more equitable distribution of value among all Paramount voting shareholders by further examining the compensation NAI will receive.
Gabelli Value 25, the mutual fund advised by GAMI holding the largest number of voting shares, is at the forefront of this initiative. GAMI manages a range of financial products, including private advisory accounts, mutual funds, and closed-end funds, leveraging its Private Market Value with a Catalyst™ investment approach.
