PRH, S&S Deal Likely Dead

Paramount's decision to forego an appeal doesn't come as a surprise. Immediately after Pan's decision came down in late October, sources were pointing out that an appeal could only be made if Paramount agreed, and while PRH CEO Markus Dohle wanted to move ahead, he acknowledged that PRH and parent company Bertelsmann were talking to Paramount executives about "next steps."

Representatives at PRH and S&S had no comment on the reports this morning.

If the deal is indeed dead, Paramount is entitled to a roughly $200 million breakup fee, something that makes ending the legal fight much more attractive to Paramount than PRH. Even the expedited appeal that PRH is seeking could take as long as nine months to be heard and would further prolong the process of finding a new home for S&S, especially if the appeal was denied and Paramount would need to revive the acquisition process.