South Park Creators Threaten Legal Action Against Skydance for Blocking $2.5 Billion Deal

Trey Parker and Matt Stone, the creators of the hit animated comedy series South Park, have accused the potential buyers of their longtime partner Paramount Global of interfering in negotiations that could net them billions of dollars. The two approached Paramount in February, telling the film and TV company that they want to keep making the series for many more years and extend a production deal that expires in 2027.

The parties were already in talks to find a new streaming home for the series in a deal worth as much as $2.5 billion. HBO Max, which held the rights, was interested, as were several other companies, including Netflix Inc. However, Skydance Media, the independent film and TV producer that's trying to buy Paramount, had ideas of its own.

The company contacted HBO parent Warner Bros. Discovery Inc. and Netflix, relaying its own wishes on contract terms and deadlines. That triggered an angry rebuke from the creators of South Park and the threat of legal action, according to a letter reviewed by Bloomberg News.

"It has come to our attention that in recent days you contacted both Netflix and Warner Bros. Discovery to interfere in the process," Parker and Stone's lawyer said in the letter to RedBird Capital Partners, an adviser to Skydance and investor in the Paramount deal.

Paramount had planned to split the US streaming rights to South Park between HBO Max and its own service, Paramount+. The HBO deal alone would have been worth more than $1 billion over 10 years, according to people with knowledge of the matter, while Paramount+ would have paid a similar fee for its deal. The agreement with HBO Max was contingent on Parker and Stone agreeing to make dozens of new episodes.

Skydance, led by Chief Executive Officer David Ellison, said it's just trying to bring financial discipline to Paramount, whose owners agreed to a sale after years of watching their investment tumble in value. "Under the terms of the transaction agreement, Skydance has the right to approve material contracts," the company said in a statement.

The dispute over South Park has damaged the relationship between Paramount's future owner and one of the company's most valuable creative teams before the deal has even closed. It is also high-profile evidence that President Donald Trump's delay of the Paramount-Skydance deal has wreaked havoc at both companies. Employees at Paramount say the studio is paralyzed, unable to make major decisions at a time when the company is struggling.

After 28 years and more than 300 episodes, South Park remains one of the most popular shows on streaming - and one of the only popular shows left on Comedy Central. As the young male viewers who formed the core of the South Park audience started to watch videos on the internet, Parker and Stone wanted to put their creation online. As part of a negotiation in 2007, they secured a 50% stake in all future online deals for the show, rights that may soon be worth billions of dollars.

The longer the two companies remain in limbo, the harder it becomes for either to make long-term plans. As the South Park negotiations dragged on, the relationship between Ellison and Paramount has grown more contentious. Ari Emanuel, one of Hollywood's most powerful talent agents, has been attempting to mediate between the two sides. He has represented both Ellison and the South Park creators.

Paramount plans to release new episodes of South Park next month. Where fans can stream those episodes is still unknown.