When a lucrative IP likeSouth Parkis on the line, things can get a little ugly if all parties aren’t on the same page. Paramount’s licensing deal for the hit property is set to expire, which means it can be shopped by creators Trey Parker and Matt Stone. However, according to the duo, the new president of Paramount (should the Skydance merger go through) is not making this easy, and now they’re threatening legal action.
Per The Hollywood Reporter, attorneys for both Parker and Stone are accusing incoming Paramount president Jeff Shell of meddling in contract negotiations, which would allow the pair to look into a fresh licensing deal for theSouth ParkIP. Park County, which is run by Parker and Stone, has threatened legal action against Shell directing potential suitors such as Netflix and Warner Bros. Discovery to modify the terms of their offers to obtain a licensing deal forSouth Park. According to the pair, the interference is being done in a “manner calculated to benefit Paramount at the expense” of their company.
As an example, it was revealed that Shell pushed Warner Bros. Discovery to give Paramount+ an exclusive 12-month window for new episodes of the long-running animated series and revise the deal from 10 to five years, a move that could put the studios' bid for the series in a much more precarious position. Park County is essentially looking to protect its rights as the matter has escalated.
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“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.”
What’s at Stake Regarding the ‘South Park’ IP?
The main issue in this matter comes down to a joint venture that Parker and Stone operate with Paramount called South Park Digital Studios. They own the streaming rights to the series, and two years remain on theoverall deal with Paramountthat is worth $900 million. Given the fact thatSouth Parkis a very lucrative IP, Paramount would like to extend that overall deal and make the show available on Paramount+. The pending deal forSkydance to acquire Paramountalso complicates matters, and, given federal antitrust laws, the merger needs to be officially closed before they can issue directives regarding deals for the series.
South Park Digital Studios consists of a five-member board of managers, which includes Paramount affiliate Comedy Partners. That being said, they have very few rights to act on behalf of the joint venture. Shell is being accused of jumping the gun, with Park County saying that Shell “had no right or authority to be demanding that SPD’s prospective counterparties make modifications to their proposals, especially modifications that would depress the value of their proposals.”
The deal, which was struck back in 2007 between Parker, Stone, and Comedy Central owner Viacom, back when the streaming market was very different, gave the pair 50% of digital revenue in perpetuity, which was split with the company. The value of the deal has only increased in the years since due to the expansion of streaming, and this is whySouth Park, as an IP, is a hot commodity. Back whenHBO Max made a dealforSouth Parkin 2019 for $550 million, half of that went to Park County. TheSouth Parklibrary consists of 300+ episodes, and that only grows every year, so the revenue is continuously growing. Any deal made for licensing will be lucrative for Parker and Stone, but it’s also something that Paramount likely doesn’t want to lose without a fight of their own.
Source:The Hollywood Reporter
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