Aug 14 (Reuters) - Billionaire investor Mario Gabelli's

investment fund filed a class-action lawsuit on behalf of

Paramount Global shareholders alleging the company's controlling

shareholder, Shari Redstone, benefited unfairly at their expense

in the $8.4-billion merger with Skydance Media, according to a

statement from Gabelli's firm.

Gabelli Value 25 Fund and affiliates alleged that Redstone's

investment vehicle, National Amusements (NAI), received $60 for

each of its Class A Paramount shares while public shareholders

only received $23, according to a statement from Gabelli's GAMCO

Investors ( GAMI ).

The lawsuit named as defendants National Amusements, which

is now known as Harbor Lights Entertainment, Paramount Global

board members, Redstone, and Skydance.

A representative of Redstone declined to comment,

and Skydance did not immediately respond to a request for

comment on the lawsuit, which was filed under seal on Wednesday

in Delaware's Court of Chancery.

GAMCO said it had an obligation to pursue the lawsuit on

behalf of its clients. "GAMCO voiced its concerns early in the

process and asked at minimum for more transparency regarding

what NAI was receiving for its identical Paramount voting

shares," said a statement from Christopher Marangi, co-CIO,

Value, of GAMCO Investors ( GAMI ). He said GAMCO was forced to redeem

its shares for cash.

The drawn-out deal with Skydance closed on August 7,

creating the Paramount Skydance Corp. ( PSKY ) The merger

combines Paramount's sprawling global distribution network and

prized film and TV library with Skydance's production and

technological capabilities.

GAMCO was listed in Paramount's 2025 proxy statement as the

second-largest shareholder with 11.7% of the company's Class A

stock.

Marangi said Paramount ignored GAMCO's concerns and did not

put the deal to a vote of minority investors, as it said was

customary.