South Park Creators Threaten Legal Action Over Secret Deal Interference Amid Paramount Merger

The creators of South Park, Trey Parker and Matt Stone, are threatening legal action over what they say is outside interference in their show’s streaming future. As reported by The Hollywood Reporter, a letter sent by their company, Park County, accuses RedBird Capital executive Jeff Shell of stepping in on deals with Warner Bros. Discovery and Netflix, without the creators’ permission.

Shell, who is set to become president of the newly merged Paramount-Skydance if the deal goes through, allegedly pushed for changes to streaming offers that would favor Paramount.

According to the letter, Shell told Warner Bros. Discovery to let Paramount+ have exclusive access to new South Park episodes for a full year, and also asked for the length of their deal to be cut in half, from 10 years to 5. Park County says those changes would hurt the overall value of the show and give Paramount an unfair advantage.

The letter from Park County’s lawyer, Afshin Beyzaee, reads, “We hereby demand that you, RedBird, and Skydance immediately cease your interference. If these activities continue, we will have no choice but to act to both protect our rights and discharge any obligations we may have to the public.”

The issue is rooted in a joint venture between Parker, Stone, and Paramount called South Park Digital Studios (SPDS), which controls the show’s streaming rights. This group includes a five-member board with Comedy Partners, a Paramount affiliate, but has limited power when it comes to making big moves without the full team’s agreement.

There are still two years left on a $900 million deal between Park County and Paramount, but as that deal gets closer to expiring, other companies are getting ready to bid. Park County believes Shell had no right to speak for SPDS, especially since the Paramount and Skydance merger hasn’t even been finalized. Antitrust laws don’t allow a company to start calling the shots before a merger officially closes.

The letter from Park County said, “You did this behind Park County’s back. 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 and using confidential information of SPDS to purport to make demands on behalf of SPDS that even Paramount has no right to make.”

South Park’s value in the streaming world has only gone up over the years. Back in 2007, when Stone and Parker first signed a deal with Viacom, streaming was still new, and DVDs were the main way people watched old episodes. But the deal they signed gave them 50% of all digital profits, a decision that’s paid off in a big way. In 2019, HBO Max paid $550 million for the rights to stream reruns of South Park, with half of that money going to Park County.

So as more offers come in for one of TV’s most profitable animated series, Parker and Stone want to make sure they’re getting the best deal — and they don’t want anyone else making decisions behind closed doors.

In my opinion, the South Park creators have every reason to be upset here. If someone is stepping in to change their deals without permission, especially when huge amounts of money are involved, that’s a serious problem. What do you think about this legal drama? Should Parker and Stone take it to court? Let us know your thoughts in the comments.

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