Trey Parker and Matt Stone accuse Skydance of interfering in their $2.5 billion streaming rights negotiations with Paramount. The South Park creators have sent a legal notice demanding an end to the alleged meddling.
The creators of South Park, Trey Parker and Matt Stone, are fighting to protect their $2.5 billion streaming deal with Paramount. They claim Skydance Media, the company trying to buy Paramount, is interfering in their negotiations. A legal letter has been sent to stop Skydance from influencing talks with Netflix and Warner Bros. Discovery.
Parker and Stone want to extend their production deal with Paramount, which ends in 2027. They were in talks to move South Park to a new streaming home in a deal worth up to $2.5 billion. HBO Max and Netflix were among the interested platforms. But Skydance reportedly contacted these companies to change their offers in ways that would benefit Paramount.
“It has come to our attention that in recent days you contacted both Netflix and Warner Bros. Discovery to interfere in the process,” said Parker and Stone’s lawyer in the letter to RedBird Capital Partners, an advisor to Skydance. The letter accuses Skydance of trying to lower the value of competing bids.
Skydance, led by CEO David Ellison, argues it has the right to approve major contracts before the Paramount deal closes. “Under the terms of the transaction agreement, Skydance has the right to approve material contracts,” the company said in a statement. However, Parker and Stone’s legal team says Skydance has no authority to act before the merger is finalized.
The dispute centers around South Park Digital Studios (SPDS), a joint venture between Parker, Stone, and Paramount that controls streaming rights. The creators claim Skydance used confidential information to pressure streaming platforms into changing their offers.
“You did this behind Park County’s back,” wrote Park County’s general counsel. “That self-dealing would have been absolutely restricted if it were done by Paramount itself. So, it is simply outrageous that even before it has been granted the authority to close the merger with Paramount, RedBird and Skydance are jumping the gun.”
Parker and Stone’s 2007 deal with Viacom (now Paramount) gave them 50% of all digital revenue from South Park. This has become extremely valuable as streaming grew. In 2019, HBO Max paid $550 million for reruns—half of which went to the creators. Now, with new deals on the table, they want full control over negotiations.
Paramount had planned to split South Park streaming rights between HBO Max and Paramount+. The HBO deal alone was worth over $1 billion for 10 years. But Skydance’s alleged interference has disrupted these plans.
The legal battle comes as Paramount struggles with financial issues and delays in its merger with Skydance. The deal is pending approval from regulators, including the FCC, due to a lawsuit involving President Donald Trump over a CBS News interview.
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Meanwhile, South Park remains one of the most-watched animated shows, with over 300 episodes. The upcoming Season 27 is set to premiere on July 9 on Comedy Central. Paramount hopes to secure streaming rights before Parker and Stone take the show elsewhere.
Credits: Sources include Bloomberg and Cracked.com.
